Taking on a lot of home improvements can add up quickly. Many people hope to get some kind of tax benefit for all that spending to make their property better. There are only a couple of scenarios, however, when you can write off home improvement expenses.
Home improvements may be smaller projects like upgrading your patio or major overhauls like a complete interior renovation. The specific kind of enhancement you’re taking on will impact whether you’re eligible for a tax credit
. A home improvement, as defined by tax law, is work that substantially adds to the value of your home, adapts the home for new uses, or increases its useful life.
The first thing to understand is that most general home improvements are not tax deductible. There are still a couple of ways to write off related expenses, which will be covered in this guide. Here is everything you need to know about writing off renovation costs.