Are home additions tax-deductible?
On One Hand: IRS AllowancesThe IRS allows deductions for home renovations and additions for three reasons: medical purposes, energy conservation and using home equity loans or line of credit. Additions for other reasons are not tax-deductible.On the Other: Common ProvisionsEven if home additions are tax-deductible, there are certain restrictions. When claiming tax deductions for medical facilities, the total cost must exceed 7.5 percent of gross earnings for the year, and energy conservation requirements change on a yearly basis.Bottom LineWhile there are some circumstances when home additions can be deducted, they are not common.
