Home repairs when phrased as home improvements can totally be deducted from your tax return! Considered as tax benefits, any work that adds substantial value to your home like, room additions, or roof upgrades. Many people switch to solar energy and get that written off when April comes.
However, it does get a little tricky. So, before you go off to Home Depot and pick out which IKEA room you want to copy, learn about how these deductions work.
Home Repairs to you Home Office
Purely personal homes cannot be deducted. One way around that is using your home as an office. You can use a part of your home as an office and qualify for a deduction. To do so, you must
- Have a legitimate business
- Use part of your home exclusively and regularly for business.
If you qualify, you can deduct 100% of the home improvements.
Rent Out Part of Your Home
By renting out part of your home, your expenses for improving that area can be used. Now, the deduction only applies to the area being rented out, but it can certainly add value to your existing home.
Those are some instances where you can get credit for beautifying your home. If you are making improvements to your home during the year, they may not necessarily be counted towards your tax breaks, but they can help if you decide to sell your home. Share some of your ideas on the Perry Homes Southern Utah Community Page for other great ideas to add value to your home!