It’s that time of the year again; the time when you have to do your taxes. It’s a pretty daunting task but you know it’s something you have to do. Then it comes to your mind that you’ve recently conducted some home repairs and routine maintenance, maybe a roofing installation or new siding for your home.
In this post, we will be discussing which of your home’s maintenance and repairs count as capital improvements and whether or not they’re tax deductible.
Maintenance vs. Capital Improvements
Before we start off, we’ll be discussing the difference between maintenance and capital improvements. Maintenance costs are what you spend in order to keep your home’s assets in their original condition while capital improvements are the investments you can make in order to increase your asset’s value. The latter is tax deductible but it is possible for routine maintenance to suddenly become a capital improvement, like a roof that you initially wanted to be repaired but turns out had to be replaced according to your roofing contractor.
Tax Deductible Improvements:
According to IRS Publication 523, a new bedroom, bathroom and garage are all valid improvements and as such are tax deductible.
Large Scale Remodeling and Repair
One of the things that fall under this criteria is a roof replacement in the event that the current roof is beyond saving. Another would be a kitchen or bathroom remodeling and extensive home repairs due to fire or flood. All of these qualify as tax deductible.
This is obviously a tax-deductible capital improvement since at first glance, it would make it obvious that the home has a high value. Improvements such as landscaping, a new driveway, fence, or even a swimming pool are tax deductible since they increase the home’s market value.
Elderly and PWD Improvements
If you have any improvements that improve accessibility in your home for the elderly and those with disabilities, such as ramps, stairlifts, handrails, etc., then it’s best you declare it as they also qualify as tax deductibles.
If you have any intentions of sprucing up your home this spring, turn to Masters Roofing for your roof replacement needs. We are your number one provider of roofing and siding services for your home improvement needs. Give us a call at (844) 400-4774 or fill out our contact form to shoot us a message and learn more about our services. We serve clients in Memphis, TN and other nearby areas.