I did a $20,000 remodel on my kitchen and was told that I could deduct this, is that true? I added electrical work for a hot-tub, can that be deducted?

[AmyT · Accepted solution]

Unfortunately, the only home improvements that may qualify for favorable tax treatment are certain energy-efficient improvements.

This article provides more information on energy efficiency tax credits available:  https://turbotax.intuit.com/tax-tools/tax-tips/Home-Ownership/Which-Home-Improvements-Qualify-/INF12...

Other improvements are added to your basis in the house (how much you have invested in the house), and will not provide any tax benefit until the house is sold.

[msthrifty]

No, none of what you spent to  remodel or add electrical circuits is tax deductible.  However, keep all your receipts, because the amount you spent to make permanent improvements (not just maintenance) to the house may be added to your cost basis when you sell.   Also, the interest on any loan that you took out to finance the improvements is not deductible anymore.

[Lisa995]

If this was your personal residence, then you cannot deduct any of the improvement costs.

The interest you pay on a home equity loan for home improvements is still deductible as part of itemized deductions.  The comment above stating that it is not deductible is incorrect, unless that loan was not secured by the house (personal loans, etc).