Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Your taxes, your way. Get expert help or do it yourself. >> Get started
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
jdallia
New Member

Improvements made to construction of main home

not during constructions added on
1 Reply
HelenaC
New Member

Improvements made to construction of main home

Generally, no, you cannot deduct improvements made on your personal residence, although you might qualify for certain kinds of energy-related home improvements. More info

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, upon sale, 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.

About Community

Learn about taxes, budgeting, saving, borrowing, reducing debt, investing, and planning for retirement.

3.49m
Members

2.63m
Discussions

Manage cookies
v