Are tax breaks available for home-improvement expenses?
At one time, federal law granted tax credits for home improvements designed to save energy, such as additional insulation or double-pane windows. However, these tax credits expired years ago. There is a still tax credit for rehabilitation of any certified historic structure listed in the National Register, but assuming your home does not meet this criterion, there are no immediate deductions or tax credits for home improvements. Still, you can add home-improvement to the amount you are considered to have spent on your home (your “basis,” in tax terminology). When you later sell the home (presumably at a profit), this means you will have less of a taxable gain to report to the IRS. It does not matter whether you make the improvements to the home at the time you purchase it or at any time thereafter. Nonetheless, it is important not to confuse “improvements” with “repairs.” Repairs consist of regular upkeep that does not add lasting value to your investment. Examples of repairs include p
