Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Nov 16, 2022 9:19:17 AM

Home improvement write off?

I got permits last year and finished the basement of my home that I sold in April 2022. What's the best way to claim the labor and materials of this? I have numerous receipts but not all of them. If I had a contractor do the work (quoted for 80k) they would not provide itemized receipts. Will I need to, or can I provide the square footage and value increase of the property plus an hourly rate?

0 1 465
1 Replies
Level 8
Nov 16, 2022 9:23:23 AM

You can write off the materials as a major purchase but that is all. Any improvement increases the basis of your home and helps you at the time you sell it. If it will be used for rental purposes, you can depreciate the cost over 27.5 years from the point that the unit becaomes ready and available to rent.