I live on a paved private road that over time had water damage. Our cost of the repair was $6000. Is this deductible?

[rhodesbiz]

The total road repair was over 30,000 to the residents on the private road , but I had to pay almost 6,000. The road was undrivable to the point that UPS would not bring packages to my house. Is any portion of that deductible? If so, where would I list it?

[HelenaC · Accepted solution]

On your personal residence, the answer is usually no.

Home improvements may come into play when you sell your home because they're included in your home's adjusted cost basis. The bigger your basis, the smaller your capital gain, and that means less tax if your home sale profit exceeds $250,000 ($500,000 if you're filing jointly). Read more about the tax implications of home sales.

To qualify as a tax deduction, the home improvement must:

• Add materially to the value of your home; or
• Prolong your home's useful life significantly; or
• Adapt your home to new uses.

For most people, home improvements – even major ones – won't help their taxes after the home is sold. Nevertheless, it's always a good idea to keep track of what you paid in home improvements over the years, not just for potential tax savings but also to help justify your selling price.

Related Information:

• Can I claim energy-efficient appliances or energy-saving home improvements?
• Is the money I made from a home sale taxable?
• Are home repairs or maintenance costs deductible?