| Posted By |
Message |
| Pages: [1] 2 |
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Tax refund & home improvements
I'm just curious how everyone did on their tax refund this year with all the home improvements?
We did rather well, but i also submitted about $14,000 in home improvements. 
How about you?
|
Posted 2/22/08 12:45 PM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Tax refund & home improvements
not very well Out of $5K, I think we got to deduct a whopping $500 or something ridiculous like that
|
| Posted 2/22/08 12:47 PM |
| |
|
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Re: Tax refund & home improvements
Posted by Meaghan729
not very well Out of $5K, I think we got to deduct a whopping $500 or something ridiculous like that
How come? 
|
| Posted 2/22/08 12:48 PM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Tax refund & home improvements
we upgraded our windows to energy star - you can only claim up to $200 for that...same with doors.
|
| Posted 2/22/08 12:51 PM |
| |
|
SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
|
Re: Tax refund & home improvements
not all home improvements are tax deductible. for example, I know a new roof is not, b/c it is considered maintenance. I'm pretty sure you can research this online to see what qualifies.
|
| Posted 2/22/08 12:53 PM |
| |
|
MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
|
Re: Tax refund & home improvements
This year we were only able to claim our windows. Next year we will be able to claim our complete reno.
|
| Posted 2/22/08 12:55 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by aliwnec10
Posted by Meaghan729
not very well Out of $5K, I think we got to deduct a whopping $500 or something ridiculous like that
How come?
Because the only home improvements that are deductable are improvements related to energy. Stuff like heating, insulation, energy star door & windows, etc. And with this... the max credit is $500.
I think there are other credits out there that will up it higher... I know my accountant got me back $1500. But that was after we did 50k in home improvements!
I hope you don't think you can renovate a kitchen for 10k and a bathroom for 5k and expect to deduct 15k off your taxes. Doing this will almost certainly raise a red audit flag.
Improvements like kitchens and bathrooms add to your cost basis deduction for when you sell the house. But that doesn't kick in unless you sell your house as a married couple for over 500k in PROFIT from what you paid for it.
|
| Posted 2/22/08 1:04 PM |
| |
|
Pumpkin1
LIF Adult
Member since 12/05 3715 total posts
Name:
|
Re: Tax refund & home improvements
Can you deduct energy star appliances?
|
| Posted 2/22/08 1:13 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Tax refund & home improvements
Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses. For example, qualifying improvements might include adding a new roof, fence, swimming pool, garage, porch, built-in appliances, insulation, heating/cooling systems, landscaping...
there are more but these would qualify for a tax deduction.
We did insulation and we are about to re-pave our driveway and patio.
|
| Posted 2/22/08 1:16 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by Blu-ize
Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses. For example, qualifying improvements might include adding a new roof, fence, swimming pool, garage, porch, built-in appliances, insulation, heating/cooling systems, landscaping...
So if I add a new fence on my property you are saying that I can deduct this on my taxes? Where on schedule C do you put this?
I would love to know because if this is true, my CPA needs a swift kick in the ***.
|
| Posted 2/22/08 1:27 PM |
| |
|
Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
|
Re: Tax refund & home improvements
I can look back at my last return where I had windows done and find out.
Off hand, I don't know.
|
| Posted 2/22/08 1:30 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by Blu-ize
I can look back at my last return where I had windows done and find out.
Off hand, I don't know.
Exactly my point. Doors and Windows qualify under the energy star exemption and you can deduct these because they relate to energy.
You can't deduct a fence.  Or a pool, or any other sort of home improvement that's not related to saving energy.
These items add to your tax basis for when you sell your house for capital gains. But you can't put them on schedule C.
Can I deduct home improvements?
|
| Posted 2/22/08 1:34 PM |
| |
|
bomb-blast
bye bye
Member since 11/06 1327 total posts
Name:
Leo
|
Re: Tax refund & home improvements
Posted by ave1024
Exactly my point. Doors and Windows qualify under the energy star exemption and you can deduct these because they relate to energy.
You can't deduct a fence. Or a pool, or any other sort of home improvement that's not related to saving energy.
These items add to your tax basis for when you sell your house for capital gains. But you can't put them on schedule C.
Can I deduct home improvements?
Yeah, I don't understand what people are talking about. The only time general home improvements come into play with taxes is when you sell the home or if you own a home as a rental property. Aside from that, most home improvements are not tax deductible.
|
| Posted 2/22/08 1:42 PM |
| |
|
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Re: Tax refund & home improvements
Posted by Blu-ize
Qualifying capital improvements are those that increase your home's value, prolong its life, or adapt it to new uses. For example, qualifying improvements might include adding a new roof, fence, swimming pool, garage, porch, built-in appliances, insulation, heating/cooling systems, landscaping...
there are more but these would qualify for a tax deduction.
We did insulation and we are about to re-pave our driveway and patio.
yeah exactly. See we fenced in our backyard, did a back deck, landscaping, etc.
I mean i could be wrong, but i just assumed that all the home improvements we did added to our big refund this year.
Message edited 2/22/2008 1:49:54 PM.
|
| Posted 2/22/08 1:48 PM |
| |
|
bomb-blast
bye bye
Member since 11/06 1327 total posts
Name:
Leo
|
Re: Tax refund & home improvements
Posted by aliwnec10
yeah exactly. See we fenced in our backyard, did a back deck, landscaping, etc.
I mean i could be wrong, but i just assumed that all the home improvements we did added to our big refund this year.
I don't know where you got that information from, but it's wrong.
Think about it, why would the IRS give someone a break because they just made their own life more comfortable? You reap the benefit of improving a kitchen, bathroom, etc...why would the IRS give you a further break by letting you deduct that on your taxes? And I'm not referring to YOU, I mean 'you', Joe Taxpayer. They do give credits for certain things like people posted above where it's energy saving or helps the environment.
Message edited 2/22/2008 1:57:30 PM.
|
| Posted 2/22/08 1:55 PM |
| |
|
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Re: Tax refund & home improvements
Posted by bomb-blast
Posted by aliwnec10
yeah exactly. See we fenced in our backyard, did a back deck, landscaping, etc.
I mean i could be wrong, but i just assumed that all the home improvements we did added to our big refund this year.
I don't know where you got that information from, but it's wrong.
Like i said above, i just assumed that was the cause behind our big tax refund. And yes i know about the energy items.
|
| Posted 2/22/08 1:58 PM |
| |
|
Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
|
Re: Tax refund & home improvements
Posted by bomb-blast
Posted by ave1024
Exactly my point. Doors and Windows qualify under the energy star exemption and you can deduct these because they relate to energy.
You can't deduct a fence. Or a pool, or any other sort of home improvement that's not related to saving energy.
These items add to your tax basis for when you sell your house for capital gains. But you can't put them on schedule C.
Can I deduct home improvements?
Yeah, I don't understand what people are talking about. The only time general home improvements come into play with taxes is when you sell the home or if you own a home as a rental property. Aside from that, most home improvements are not tax deductible.
This seems to be a really widespread misconception that home improvements are deductible. The VAST majority of home improvements and repairs are NOT deductible. I'm not a tax professional, but I suggest people who are unsure contact a good one...
I thought for a while some home improvements were deductible, but my accountant and financial advisors cleared that up for me REALLY quickly. Most are not - a few (very few) are. Fences, pools, etc. are not.
Message edited 2/22/2008 2:01:03 PM.
|
| Posted 2/22/08 2:00 PM |
| |
|
Jessee
LIF Adult
Member since 3/06 1260 total posts
Name:
Jessee
|
Re: Tax refund & home improvements
My acct told us just the energy saving stuff - insulation, windows, & doors.
We did convert from electric to gas - does anyone know if our burner is deductible?
|
| Posted 2/22/08 2:06 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by aliwnec10
Posted by bomb-blast
Posted by aliwnec10
yeah exactly. See we fenced in our backyard, did a back deck, landscaping, etc.
I mean i could be wrong, but i just assumed that all the home improvements we did added to our big refund this year.
I don't know where you got that information from, but it's wrong.
Like i said above, i just assumed that was the cause behind our big tax refund. And yes i know about the energy items.
Well if you did your taxes yourself and you deducted these on Schedule C then yes that would be the reason why you received a big tax refund.
It will also be the reason why you may get audited later on.
If you deducted these on schedule C, you may want to correct your deductions and file an amended return or talk to a tax professional in regards to what you can deduct and what you can't.
Just looking out.
|
| Posted 2/22/08 2:11 PM |
| |
|
bomb-blast
bye bye
Member since 11/06 1327 total posts
Name:
Leo
|
Re: Tax refund & home improvements
Posted by Kara
This seems to be a really widespread misconception that home improvements are deductible. The VAST majority of home improvements and repairs are NOT deductible. I'm not a tax professional, but I suggest people who are unsure contact a good one...
Maybe someone should post a PSA on one of the main boards! LOL
|
| Posted 2/22/08 2:12 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by Jessee
My acct told us just the energy saving stuff - insulation, windows, & doors.
We did convert from electric to gas - does anyone know if our burner is deductible?
It probably is because I think new burners are. But you should check with your accountant to verify.
I also think some new central air systems are deductable under the energy credit.
Anything solar powered is definitely deductable as well.
|
| Posted 2/22/08 2:13 PM |
| |
|
bomb-blast
bye bye
Member since 11/06 1327 total posts
Name:
Leo
|
Re: Tax refund & home improvements
Posted by ave1024
Well if you did your taxes yourself and you deducted these on Schedule C then yes that would be the reason why you received a big tax refund.
It will also be the reason why you may get audited later on.
If you deducted these on schedule C, you may want to correct your deductions and file an amended return or talk to a tax professional in regards to what you can deduct and what you can't.
Just looking out.
Exactly. Schedule C is for business deductions only.
|
| Posted 2/22/08 2:14 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by bomb-blast
Posted by Kara
This seems to be a really widespread misconception that home improvements are deductible. The VAST majority of home improvements and repairs are NOT deductible. I'm not a tax professional, but I suggest people who are unsure contact a good one...
Maybe someone should post a PSA on one of the main boards! LOL
See they USED to be deductable and many people (mainly old schoolers) still think with the old laws.
But in 1997 when they changed the capital gains law, they allowed homeowners to take their first 250k on profit off their capital gains tax (500k for joint filers).
But nothing in this world is free. In exchange for this, the government did away with the home improvement tax deduction for itemizing. The only improvements you can deduct now are energy related.
|
| Posted 2/22/08 2:16 PM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: Tax refund & home improvements
Posted by bomb-blast
Exactly. Schedule C is for business deductions only.
Yeah my bad. I keep forgetting that Schedule C is related to the business part of my return and that itemizing your personal deductions has it's own section.
While I know enough about the laws in general, this is why I don't do my own taxes. I would screw up filling out the form.
Message edited 2/22/2008 2:22:23 PM.
|
| Posted 2/22/08 2:19 PM |
| |
|
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Re: Tax refund & home improvements
Posted by ave1024
Well if you did your taxes yourself and you deducted these on Schedule C then yes that would be the reason why you received a big tax refund.
It will also be the reason why you may get audited later on.
If you deducted these on schedule C, you may want to correct your deductions and file an amended return or talk to a tax professional in regards to what you can deduct and what you can't.
Just looking out.
I didn't do my own taxes.  And this is why! Clearly i know nothing about taxes.
Again, i just assumed. 
Message edited 2/22/2008 2:31:47 PM.
|
| Posted 2/22/08 2:27 PM |
| |
|
| Pages: [1] 2 |
