Home improvements

Forum|Forum|4 years ago
April 6, 2022
2 replies
10 views

Can I deduct the money I received from my mortgage refinance for home improvements such as replacing rotting eaves and adding a slab and pergola?

xmasbaby0

Level 15

If those expenses were for your own home and not a rental property that you own, no, you cannot deduct repairs or improvements to your personal residence. Save your records of the improvements for someday when you sell the house.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Cynthiad66

Level 14

Home improvements to your personal residence is not deductible. You should add these improvements to the basis of the property which could reduce the gain if sold.

You add the cost of capital improvements to your tax basis in the house.

Your tax basis is the amount you'll subtract from the sales price to determine the amount of your profit.
A capital improvement is something that adds value to your home, prolongs its life or adapts it to new uses.

There's no laundry list of what qualifies as a capital improvement, but you can be sure you'll be able to add the cost of: