CAN i CLAIM HOME IMPROVEMENT WHEN THE TENANT MOVED OUT OF THE APPARTMENT

[VictoriaD75]

Is this for a personal residence or rental property? If the home improvement is a large update that extends the useful life (think new roof) or increases the value of the property (like an addition), the improvement can be capitalized. This means it increases the cost basis of the home. If it is a personal residence, this will help decrease the amount of gain in the year of the sale. If this is a rental property reported on Schedule E of your tax return, the improvement can also be depreciated.

If the improvements are general maintenance or minor repair, there is no deduction for a personal residence. These types of repairs can be expensed for rental properties to reduce rental income.

Rental Real Estate and Taxes

@oranvilenel