deductibility of home improvement
Ken Stone
keeping receipts and cancelled checks so that when the house
is sold I will be able to deduct the cost of improvements
against the increased value of the home.
My question relates to which expenses are deductible.
Specifically, is the cost of kitchen appliances a deductible
item?
Thanks,
ken
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Dave Woods, EA
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
There is no such thing as a deductible home improvement.
--
David M. Woods, EA
Boston, MA 02109
Postings here are general information only and not to be
relied upon as advice.
William P. Brown
> We are in the middle of a home improvement project. I am
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
Do not confuse "deductible" with "increase in basis."
"Deductible" implies deductible on this year's return. The
expenditures you describe are not deductible. The do seem to
be increases in basis.
The cost of improvements and other long lived assets that
become a part of the home add to basis. That includes
appliances in a remodeled kitchen.
Regards,
Bill
~~~~
Associate Professor of Accounting
Longwood University
Department of Accounting, Economics & Finance
http://www.longwood.edu/staff/wpbrown/
Opinions expressed by me are mine, not my employer's.
Dick Weaver
> We are in the middle of a home improvement project. I am
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
In addition to the responses you will get about what is and
what is not deductable, note that there is a 2nd
requirement: Only those improvements still with the house at
the time of sale can be deducted. Replace an appliance
twice and only the 2nd replacement will be deductable.
dick w
Don Priebe
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
All expenditures of an overall improvement project, even
those which would be repairs under normal circumstances
(such as painting), can be capitalized. Appliances would be
capital items in any case. So yes, appliances count as part
of the basis of your home when you sell.
Congratulations for living in an area where you have to
worry about paying taxes when you sell your home!
--
Don EA in Upstate NY
Paul A. Thomas
> We are in the middle of a home improvement project. I am
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
They aren't "deductible" items, but would add to basis IF
the kitchen appliance is part of the house. If it will go
with you, then it's not part of the house, and not part of
your homes cost basis.
--
Paul A. Thomas, CPA
Athens, Georgia
tax...@negia.net
Tax Associate
> We are in the middle of a home improvement project. I am
> keeping receipts and cancelled checks so that when the house
> is sold I will be able to deduct the cost of improvements
> against the increased value of the home.
>
> My question relates to which expenses are deductible.
> Specifically, is the cost of kitchen appliances a deductible
> item?
>
> Thanks,
> ken
Those are only deductible if you depreciate your business
use of home and using it exclusively some portion of your
home in business. Kitchen appliances I doubt consider as
business expense. If you have mortgage interest on home
improvement project then it is different story.
Tax Associate