The only thing certain in life is death and taxes: This all too familiar refrain might be unavoidable, but tax time doesn’t have to be as painful as you think if you are planning on some home improvement projects.
Improvements can cut your tax bill when you sell your property, but before you get started, it’s important to keep in mind that not all home expenses are treated equally; for example, the IRS considers repairs to be a matter of preserving the home’s original value rather than enhancing its value. Consequently, it’s only improvements (like replacing the roof or adding central air conditioning) that will help decrease your future tax bill (and if you do make a lot of upgrades, make sure to keep your receipts).
If you are concerned about gray areas (such as remodeling the kitchen because some old, failed plumbing created a need for improvements), then you…
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