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 2
posted Feb 7, 2024 9:11:40 AM

What is the definition of major renovation in Itemized deduction - General sales taxes?

Background: I am planning to use State and Local General Sales Tax Deduction worksheet in 1040 schedule A, itemized deduction. 

 

- Enter on line 7 any state and local general sales taxes paid on the following specified items.

- substantial addition to or major renovation of a home

 

What counts for substantial addition to or major renovation of a home? For example, is adding central air conditioning considered as "substantial addition"? Is replacing furnace a "major renovation"?

1 1 569
1 Replies
Expert Alumni
Feb 7, 2024 9:41:11 AM

No, those would not be substantial additions.     Adding a room or pool would be a major renovation.  Sales Tax on Renovations.    To qualify, the home improvement must:

 

  • Add materially to the value of your home
  • Prolong your home's useful life significantly
  • Adapt your home to new uses