New home

[Schrods0215]

• I just bought a home this year and wonder what I am allowed to deduct on my taxes. Is it just the taxes or can you deduct home improvements

[DashonnonH]

Hi Schrods0215, you can only deduct property taxes paid and mortgage interest paid on your tax return each year.

Remember that deducting interest (on mortgage up to 750K, if mortgage is over 750K a portion of the interest will not be deductible) and taxes paid on your home are part of itemized deductions; if your standard deduction is higher than itemized deductions, your taxes and interest will not be used because the standard deduction is a better deduction for you.  

Home improvements are added to the cost of your home and increases what you paid for the home. So when you sell the home, your gain will be less. I have attached an article you can refer to below. 

https://turbotax.intuit.com/tax-tips/home-ownership/home-improvements-and-your-taxes/L6IwHGrx6

[VolvoGirl]

Keep track of major improvements like a roof or hvac system.  Major improvements will be added to your cost when you sell.