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Tax reduction for home improvements
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Tax reduction for home improvements
We redid our kitchen in the spring and the kitchen consult at HD told us this year there is a deduction for home improvements. I googled for it but can't find it. Anyone know what this is or what it is called?
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Posted 7/5/12 8:13 AM  |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Tax reduction for home improvements
It's an income tax credit, not a property tax reduction. I don't know exactly how it works.
There is a property tax exemption (421-f) in certain areas for capital improvements, but there are a lot of restrictions and it would only apply if the renovations to the kitchen increased your assessment.
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| Posted 7/5/12 10:48 AM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Tax reduction for home improvements
Yes, he called it capital improvements I know it's not a property tax deduction. I was referring to our yearly income tax returns.
Message edited 7/5/2012 1:41:01 PM.
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| Posted 7/5/12 1:38 PM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: Tax reduction for home improvements
Did you get new appliances for the kitchen? Maybe he was referring to a tax credit for energy efficient appliances?
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| Posted 7/5/12 1:44 PM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Tax reduction for home improvements
Posted by MrsC2009
Did you get new appliances for the kitchen? Maybe he was referring to a tax credit for energy efficient appliances?
No, it was specific to capital improvements made to your home. We did buy new appliances, but purchased those in 2011. The kitchen reno was this year.
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| Posted 7/5/12 3:02 PM |
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Peaches77
LIF Adult
Member since 1/10 993 total posts
Name:
Me
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Re: Tax reduction for home improvements
Posted by Cheeks24
Posted by MrsC2009
Did you get new appliances for the kitchen? Maybe he was referring to a tax credit for energy efficient appliances?
No, it was specific to capital improvements made to your home. We did buy new appliances, but purchased those in 2011. The kitchen reno was this year.
Capital improvements to your home would be added to your original purchase price to calculate your total basis in the home when it comes time to sell.
This is important if when you sell, depending on your marital status and gain on the sale of the home, if any of that gain is taxable. Including these capital improvements in your original purchase price will help reduce any gain that may occur.
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| Posted 7/5/12 3:19 PM |
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