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How do I write-of a ST-124 certificate of capital improvement expense on my TAX RETURN

Forum|Forum|3 years ago
December 21, 2022
3 replies
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We purchased the house in July. Did repairs -capital improvement of $10,000. It is our primary home. How can we deduct these costs?

TurboTax Self Employed Online

Best answer by Critter-3

Where to Report:https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/take-home-office-deduction/L8nsQkp1O_US_en_US?uid=lby7fh5k

Critter-3

You don't ... a capital improvements on a personal residence is added to the cost basis. There is nothing to deduct on an income tax return.

J

joblak1Author

So, I have to wait to sell the house ?

Hal_Al

Employee

A ST-124 certificate of capital improvement expense is for an exemption from paying NY state sales tax on the building materials. It has nothing to do with your fedearl or state income tax returns.

As others have said, all you do is add the project cost to your cost basis for any future sale.

VolvoGirl

Employee

Are you using part of your house for a Home Office or for your business? You can use the total of the house purchase plus the improvement to depreciate part of it.