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If a contractor did major renovations and billed a total cost (not breaking out sales tax) can I deduct for the amount (Example: Hardie siding and carpentry)?

Forum|Forum|7 years ago
June 4, 2019
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Best answer by Celery63

Repairs, maintenance, and improvements to your personal residence property are not deductible from current income. If you make major improvements which increase your home’s market value or extend its useful life, you can add the cost of the improvements to the cost basis of your home, and you get the benefit when you sell.
You might find it helpful to read IRS Pub. 530, Tax Information for Homeowners
http://www.irs.gov/pub/irs-pdf/p530.pdf

C

Celery63Answer

Repairs, maintenance, and improvements to your personal residence property are not deductible from current income. If you make major improvements which increase your home’s market value or extend its useful life, you can add the cost of the improvements to the cost basis of your home, and you get the benefit when you sell.
You might find it helpful to read IRS Pub. 530, Tax Information for Homeowners
http://www.irs.gov/pub/irs-pdf/p530.pdf

C

Coleen3

Employee

Yes, the total amount, including the sales tax, is deductible but for rental property only. You would add the amounts to the basis of a personal use home.