Any accountants out there?

This might be a question for the home board...but I thought I would put it here.

I remember someone telling me (or I read somewhere) that home improvements (like an addition) are tax deductible, and I should get/save receipts for everything. Is this true or not? My mom says no...but I swear I heard it somewhere. If anyone knows, please answer. Thanks.

Re: Any accountants out there?

Re: Any accountants out there?

Im not a tax accountant, but I am a CPA, the addition to your house would increase your basis in the house (i.e. if you paid $300K and put on a $50K addition, your new basis is $350K). I know that this is important when you sell your house for a gain and have to determine if the gain is taxable or not.


Other than that, i don't know of any other deductions, except for maybe the interest you would have on the loan you used to build the addition, but remember, I don't do taxes so i could be wrong.

Re: Any accountants out there?

Re: Any accountants out there?

Here is something...I believe there are things you can definitely claim.....
Home repairs and improvements. Some repairs or improvements may qualify as a tax deduction. Others may not qualify, but may be very helpful when calculating the cost basis for your home when you sell it. Keep all these documents with your tax records, and keep them until you sell your home. If you sell before 7 years, keep the deducted repairs with your tax records for 7 years.

And here is the link where I got it from...you probably have to speak to an accountant to find out exactly what is tax deductible in home improvements.....I knew you are able to include that but not sure exactly what can be claimed.....
The Link