Can you write off a remodel?

No, you can't deduct your home improvement expense with a home renovation tax credit. However, there are tax deductions for home improvements to make your home more energy efficient or to make use of renewable energy resources, such as solar panels. Improvements to rental properties can get complicated. Repairs are tax-deductible as they are considered necessary for the maintenance of a property.

Like home offices, repairs to rental properties can be deducted within the year they are completed. Improvements, such as bathroom renovation, kitchen remodeling, adding a laundry room, or appliance upgrades, add value to your rental property and therefore depreciate over time. If you qualify for this deduction, you can deduct 100% of the cost of improvements you make only to your home office. For example, if you use a bedroom in your home as a home office and you pay a carpenter to install built-in shelving, you can devalue the total cost as a business expense.

Repairs are not tax-deductible; if you've had to invest in a major plumbing installation in your kitchen or bathroom, you can't deduct it. On the other hand, a remodeling project may be tax-deductible. So can home repairs be deducted from taxes? Unfortunately not, but if it is a remodel, which would take care of any issues and improve your home, you may be able to benefit from the tax deduction.

Brielle Wilson
Brielle Wilson

Hipster-friendly pop culture buff. Total bacon scholar. Freelance coffee scholar. Friendly tv guru. Award-winning pop culture practitioner.