Can Homeowners Deduct Home Maintenance Costs on Their Taxes?
As a homeowner, you may wonder if the costs of maintaining your home can be deducted from your taxes. From routine tasks like painting and cleaning to larger projects such as plumbing repairs and appliance installation, keeping a home in good shape isn't cheap. Here at ElmBrook Handyman, we want to help you understand the tax implications of these expenses.
Are Routine Home Repairs Tax-Deductible?
According to the Internal Revenue Service (IRS), routine maintenance and repair expenses are typically not tax-deductible. This means that costs associated with normal wear and tear or minor fixes cannot be deducted from your taxable income.
However, there's an important exception to keep in mind.
If you use part of your home for business purposes, the IRS allows you to deduct home repairs within the year they're made, provided they are necessary for the upkeep of your business(1).
The Impact of Home Improvements on Your Taxes
While routine home repairs might not be tax-deductible, certain home improvements could have tax implications. Home improvements, which add value to your home or prolong its life, can increase the cost basis of your home(3). Although you can't deduct the cost of these improvements in the year you spend the money, they could potentially lower your tax bill when you sell your house.
What About Landlords?
If you're a landlord, the tax rules are slightly different. You may be able to deduct property additions or improvements from your taxable income(4). This includes both necessary repairs and improvements made to maintain the rental property's good condition.
Home Office Deductions
In the era of remote work, many homeowners now use part of their home as a workspace. In this case, home office improvements can be deductible over time with depreciation. Repairs within the home office area are deductible within the tax year they are completed(5).
Conclusion
In conclusion, while most home maintenance costs aren't tax-deductible for homeowners, there are several exceptions to consider. If you're planning significant repairs or improvements or use part of your home for business, it's worth consulting with a tax professional to understand potential deductions.
At ElmBrook Handyman, we're committed to helping home and business owners maintain their homes. Whether you need plumbing repairs, new appliance installation, or help with a variety of other tasks, we're here to provide top-quality service.
Remember, keeping detailed records of all your home repairs and improvements can be extremely helpful when tax season rolls around. Even if you can't deduct these costs now, they may help you save on taxes in the future.
Simply click the button below to fill in our intake form and a member of our team will be with you shortly.
