Are home improvements a tax deduction in Illinois?
June 13th, 2009 | by The Builder |
Tom C asked:
My wife and I just remodeled a bathroom and one of our friends told us that home improvements can be a tax deduction. Is this true?
My wife and I just remodeled a bathroom and one of our friends told us that home improvements can be a tax deduction. Is this true?
4 Responses to “Are home improvements a tax deduction in Illinois?”
By v b on Jun 16, 2009 | Reply
No. It adds to your cost basis. You use the cost basis to determine your gain when you sell. Less gain, less tax.
By Wayne Z on Jun 16, 2009 | Reply
No.
Home Improvements have never been a tax deduction.
For the past couple of years, you could get a small credit for certain energy efficient improvements to your house but, A) The Credit expired as of 12/31/07; and, B) Remodeling a bathroom didn’t count.
By Judy on Jun 17, 2009 | Reply
Your f’riend is wrong, unless it’s rental property you own and are renting out. If it’s your personal residence, it isn’t deductible. Keep the receipts though, and if you owe capital gains tax when you sell the home, it will reduce the gain and therefore the tax.
By Will on Jun 17, 2009 | Reply
This isn’t true at all. All the previous answers are absolutely right. If it’s your own home then the improvements are nondeductible. I came across the same question when I purchased my first home (condo). But, I soon found out that improvements are nondeductible.