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March 16, 2022
Question

Bought 2nd Home , same state, went to a mayor renovation, Can I deducted any of those expenses ?

  • March 16, 2022
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2 replies

March 16, 2022

I think you bought a 2nd home and made minor repairs.  No, you can't claim renovation expenses, They are referred to in IRS parlance as "property improvements". Property improvements add to the cost basis of the property and not deductible per-se.

 

You can deduct property taxes on your second home, too. In fact, unlike the mortgage interest rule, you can deduct property taxes paid on any number of homes you own. However, beginning in 2018, the total of all state and local taxes deducted, including property taxes, is limited to $10,000 per tax return.

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March 16, 2022

No, renovation costs are not deductible on a personal home.  If you took out a home equity loan to do these renovations, you could deduct the interest.

 

You will add the rest of the costs to the cost basis of your house, then when you sell it, your taxable profit from the sale will be decreased. 

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