You can not deduct the expense to purchase and install a whole house generator on your tax return. This is considered a capital improvement and is added to the basis of your home. Your basis is used when you sell to determine capital gain or loss.
A capital improvement is something that actually adds to the value of the home or increases its usefulness. Some examples of capital improvements are:
- Remodels and room additions (including decks and porches)
- New or upgraded landscaping, irrigation, sprinkler system
- Hardscape such as pavement, block or retaining wall, patio
- Fencing
- Swimming pool, spa
- Storm windows, doors
- New roof
- Central vacuum or security system
- Upgraded wiring, plumbing, ductwork
- Central heating, AC, humidifier
- New furnace, water heater
- Filtration, soft-water, or septic system
- Built-in appliances
- Whole house generator
- New flooring or wall-to-wall carpeting
- Upgraded insulation
- Satellite dish
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