Q Can I take a tax deduction for home repairs or home improvements?
A Generally, you cannot deduct home repairs or home improvements on your tax return in the current tax year.
Home improvements add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of home improvements to the tax basis of your property, the amount you “have in” your home including purchase price, non-deductible closing costs, and improvements.
“Basis” is the amount you subtract from the home’s selling price to determine how much profit (or loss) you realize on the sale of the home.
Examples of home improvements include putting a recreation room in your unfinished basement, adding another bathroom, or bedroom, putting up a fence, putting in new plumbing or wiring, putting on a new roof, or paving your driveway.
Home repairs maintain your home in good condition. They do not add to its value or prolong its life, and you do not add their cost to the tax basis of your property. Nor can you deduct home repairs on your tax return.
Some examples of home repairs include repainting your house inside or outside, fixing your gutters or floors, repairing leaks or plastering and replacing broken window panes.
The entire job is considered a home improvement, however, if items that would otherwise be considered home repairs are done as part of extensive remodeling or restoration of your home.
One exception is if you are using a portion of your home for a home office. In that case, repairs and improvements specific to the home office space are deductible.
