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Tax Deduction for Home Improvements
Unfortunately, renovations made to your primary home are not usually deductible for tax purposes. However, you can still benefit tax-wise from renovations in certain instances. See below for some examples:
Times When You Can Deduct Home Improvements
Otherwise, renovations and improvements on primary homes are not inherently & automatically tax deductible.
**However, you should still track home improvements, as it can adjust the basis for your eventual home sale gains calculation. For this reason, you’ll want to keep a simple spreadsheet log of improvements over time, along with copies of receipts.
The story is different for rental/investment properties. You can deduct any repairs on rental properties in the year you incur the expense. For capital improvements on rentals, you can deduct the expense over a period of several years.
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