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posted Mar 16, 2021 9:03:23 PM

I refianced my house in May 2020, I took out 30,000. I then had home improvements made to my house but financed them, are these things I can claim this as things I spent?

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1 Replies
Expert Alumni
Mar 17, 2021 5:33:22 AM

Possibly.  There are two issues here.

 

If you used all of the additional $30,000 to do improvement, the mortgage interest would be deductible.  If not it will be pro-rated for the portion that was not.

 

Second, The improvement value added to your home will become part of the homes cost basis.  This will effect the taxable proceeds  when selling your home.