Returning as home owner after renting for 4 years

[zeppchr]

We returned to our previous home after renting for four years at the beginning of last year. Can I claim the repairs such as carpet, painting, landscaping, etc. that I had to do in order to get the home repaired after renters? If yes, where do I file this in my Downloaded return? 

[Cynthiad66]

No.  You cannot deduct expenses for repairing/renovating your personal residence.  You can add the capital improvements to the basis of the house so that if you sell the property it will reduce your gain.

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 an increase in the adjusted basis when you sell, 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 until 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.