Tax Deductions

Forum|Forum|6 years ago
October 13, 2019
2 replies
15 views

Hello! I am a 58 year old truck driver and I own a double house of which I rent out the lower apartment. I normally put the maximum amount in my IRA to get the tax deduction. I had previously been investing in home improvement projects for the tax deduction benefits, until my bills started eating up a large part of my budget. This year, I am receiving a considerable amount of money from an inheritance. I intend to pay off my bills, but now, I am concerned about this years taxes. My tax return was down about a thousand dollars last year with the same deductions as previous years. I am wondering if it would be wise to invest in a home improvement project before the tax season to get a better deduction and increased return?

Deduction

Critter

Level 15

You really need to consider all the angles carefully before making a choice ... does the house need the improvement ? Would the money be better put into savings or some other investment to earn more income ? Remember that the improvements to the rental portion of the building must be depreciated and the personal portion is not deductible at all. And never spend a $1 you don't need to just to get 10-30 cents off your tax bill.