Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Pioneer
Posts: 1
Registered: ‎04-05-2018

Home Siding Deduction?

[ Edited ]

I added new siding to my home, is this a deductable home improvement? If so where?

Council Member
Posts: 516
Registered: ‎04-06-2016

Re: Home Siding Deduction?

This is not a deduction on your tax return this year, but you should keep a record of it because it can be taken into consideration when/if you ever sell your home since it will increase your cost basis. (Cost basis is basically the amount you paid plus any major improvements (not including regular home maintenance) you've made.) When you go to sell your house, the amount you have to pay taxes on is the amount you sell it for minus your cost basis (your gain).  In certain cases you can get an exemption for part of your basis, so you may not owe taxes on the sale at all, but if you don't qualify for the exemption or if you have a large gain, having a record of your improvements can reduce the tax you'll owe on the sale of your house.

 

Karen