I have a question about home renovation tax credit? Can I deduct the money I spent remodeling my home using home improvement tax deductions?
No, you cannot deduct the expense of home improvement using a home renovation tax credit. However, home improvement tax deductions are available for making your home more energy efficient or making use of renewable energy resources such as solar panels.
If the home renovation is a home improvement, you can add the cost of the improvement to the basis of your home. By adding the cost of improvement to your basis, the gain on your property will decrease when you sell it.
You must keep records of any improvements made to your property. If the cost is a repair, you can’t deduct it nor add it to the basis of your home.
Improvements to your property include:
- Add to its value
- Prolong its useful life
- Adapt it to new use
- Putting a recreation room in your unfinished basement
- Adding another bathroom or bedroom
- Putting up a fence
- Putting in new plumbing or wiring
- Installing a new roof
- Paving your driveway
A repair keeps your home operating efficiently. It doesn’t add to the value of your home or prolong its life.
- Repainting your home inside or outside
- Fixing your gutters or floors
- Fixing leaks or plastering
- Replacing broken window panes