claim home improvements expenses
Can I claim home improvements expenses on my TurboTax return?
Improvements to your home can increase its value and make it more livable. However, many homeowners are unsure whether they can include these costs on their TurboTax tax return. This article examines situations in which home remodeling costs may qualify for a tax deduction and explains how to use TurboTax to handle this process.
Energy-efficient upgrades: Upgrades involving energy-efficient windows, HVAC systems or solar panels may be eligible for energy tax credits.
Home office upgrades: You can claim modifications made to part of your home as home office expenses if you use that space for work.
Capital improvements: Improvements made to your home that add value or extend its lifespan can increase its cost basis, which can reduce capital gains taxes upon sale.
Using TurboTax to Claim Eligible Improvements
If you’re eligible for any of the deductions or credits mentioned above, here’s how you can use TurboTax to claim them:
Keep a record of all receipts and documentation related to your home improvements. This includes invoices, contracts, and any certification for energy-efficient upgrades.
Select the section for Deductions and Credits to explore available tax breaks.
Enter the details of your eligible home improvement expenses. If you’re claiming energy credits, make sure you have the necessary forms and documents ready.
TurboTax will guide you through the review process, making sure you don’t miss any deductions. Once you’ve confirmed all the information is accurate, you can submit your return.
Conclusion
some home renovation costs may be eligible for a tax deduction or credit, especially if they involve energy-efficient upgrades, home office improvements, or capital improvements. Using TurboTax, you can easily navigate the process of claiming these deductions.