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Where do I enter itemize info from upgrading my home

 
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2 Replies

Where do I enter itemize info from upgrading my home

What do you mean by "upgrading my home?"   Improvements to your own home are not deductible.

**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.**
MayaD
Expert Alumni

Where do I enter itemize info from upgrading my home

When you make a home improvement, such as installing central air conditioning or replacing the roof, you can't deduct the cost in the year you spend the money. But, they may help you reduce your taxes in the year you sell your house.

Money you spend on your home breaks down into two categories, tax-wise: the cost of improvements versus the cost of repairs.

  • Capital improvement is something that adds value to your home, prolongs its life or adapts it to new uses. You add the cost of capital improvements to your cost basis in the house. Adding the cost to your basis will reduce the capital gain when you sell your home. Also, certain energy-saving home improvements can give you tax credits at the time you make them.
  • The cost of repairs, on the other hand, is not added to your cost basis and it is not deductible. 

For more information please check: Home Improvements 

 

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