Can Home Repair or Renovations Reduce One's Taxes?

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In summary: However, articles I've come across seem to say the "opposite". If anything, it seems that in most cases such events are not tax deductible. Although, in some very specific cases, this may be a possibility.
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kyphysics
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I've Googled this a little bit after an old college friend mentioned to me that her parents supposedly used some method like this to reduce their taxes regularly (she seemed to imply they did this "frequently" on the recommendation of their accountant - maybe not every year, but it sounded like a few times, at least over the decade), but couldn't find any definitive answers.

If anything, it seems articles I've come across may say the "opposite" (well, as in, in most cases such events are not tax deductible):
https://www.businessinsider.com/personal-finance/are-home-improvements-tax-deductible

Although, in some very specific cases, this may be a possibility: https://www.usatoday.com/story/mone...owners-can-get-breaks-their-taxes/4154378002/

1.) home office repairs/renovations - if you use your home office space strictly for business only, then you can deduct things done to it
2.) capital improvements - renovations that "add value" to your home (not just fixing a broken faucet, but like remodeling the entire kitchen). Although, in this case, it may not matter much if the total capital gain (even after value added via renovation) is not above the deductible amount already in place ($250,000 for singles and $500,000 for couples) for when you sell your home.

Other than these two cases, would anyone know of any other possibilities (particularly, ones that one might be able to use regularly)?

Random Side Note/Question: Has anyone ever considered (or done it) going to an accountant regularly to see how one might reduce their taxes regularly (in this case, I mean not just pertaining to home repair/renovation, but just in general)? Probably not worth it for a low-income earner, but if one is making, say, $80,000 and above, might it be worth it to pay to consult with an accountant? Anyone know how much is charged if so?

Random Side Note/Question2: Would others maybe be interested in a personal finance thread? I had one years ago when I was super ignorant of the topic and posted Dave Ramsey articles/videos that ended up getting it shut down. lol. I promise I won't post his stuff if we can launch a new and improved version of that thread. ...I'm not the same person as I was back then. Have learned quite a lot (but nowhere near enough and always looking to sharpen my knowledge).
 
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Hi kiphysics!

Not in Spain, as far as I know. Not indirect taxes (we call them IVA), not in the direct taxes (IRPF). But of course the bill is a cost, and if you compute it among the amount of expenses, somehow you will end up with a minored impositive basis. But it is nothing deductible

Greetings
 
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FAQ: Can Home Repair or Renovations Reduce One's Taxes?

Can I deduct home repairs or renovations on my taxes?

It depends on the purpose of the repairs or renovations. If they are considered to be for improving the value of your home, then they may be deductible. However, if they are simply for maintenance or cosmetic purposes, they are not eligible for tax deductions.

What types of home repairs or renovations are tax deductible?

Generally, only home improvements that increase the value of your home are tax deductible. This includes major renovations such as adding a new room, upgrading the kitchen or bathroom, or installing energy-efficient upgrades.

Can I deduct the cost of labor for home repairs and renovations?

Yes, labor costs for eligible home improvements may be deductible. However, this only applies if you hired a professional contractor to complete the work. If you did the repairs or renovations yourself, the cost of your labor is not tax deductible.

Are there any limitations on the amount I can deduct for home repairs or renovations?

Yes, there are limitations on the amount you can deduct for home improvements. The total amount of deductions for home repairs and renovations is limited to the increase in your home's value. Additionally, there may be further limitations based on your income and the type of improvement.

Do I need to keep records of my home repairs and renovations for tax purposes?

Yes, it is important to keep detailed records of all home repairs and renovations that you plan to deduct on your taxes. This includes receipts, invoices, and any other relevant documentation. These records may be requested by the IRS in the event of an audit.

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