ARE HOME IMPROVEMENTS TAX DEDUCTIBLE? IT DEPENDS…
When you’re starting a home improvement project, a budget is essential. From initial blueprint to final construction, the costs associated with making renovations can skyrocket quickly. If you’re asking yourself the question, “can I claim home improvements on my taxes,” then you’re approaching home improvements with the right mindset.
Any renovation or update to a home can be a costly expense, especially if it’s an older home. By determining what home improvements are tax-deductible, you can potentially recoup some of your investment after your home renovation is complete.
Although no two home improvement projects are the same, you may be able to write off a variety of installations, such as a new HVAC system or more energy-efficient windows and patio doors. Making general improvements to your home can also help improve your resale value. If you’re considering a backyard addition that includes energy-efficient patio doors, like our Aluminum Sliding Door System, you can expand your interior living room into a new outdoor living space to open up your existing floor plan and add value to your property.
Project by John Maniscalco Architecture | Photography by Joe Fletcher
Other home improvements, such as a new roof, can also be deducted from taxes since a new roof will protect the property for years to come. If you use part of your property as a home office and make renovations to that area of your residence, you can write off those home improvements on your taxes.
In addition to writing off home office improvements, you can deduct renovations and updates made to any part of the home that you rent out. Making adjustments to a pool house or basement that can be rented out to a tenant can improve your home’s value and be written off during tax time.
There are a variety of options when it comes to discerning if your home improvements are tax-deductible. Please consult with a licensed accountant to help you determine what upgrades you can and can’t write off.