Are home improvements tax deductible for 2025 taxes?

Unfortunately, most home improvements to your primary residence are not tax deductible in the current tax year. The tax code doesn't allow deductions for personal expenses, which includes renovating your kitchen and bathrooms. However, there are three scenarios where your home improvements might have tax implications: 1. When you sell your home - these improvements increase your "basis" (what you paid for the home plus improvements), which can reduce any potential capital gains tax when you sell. 2. Home office deduction - if you legitimately use part of your home exclusively for business, you might deduct a portion of certain improvements related to that specific area. 3. Energy-efficient improvements - there are tax credits (not deductions) available for certain energy-efficient upgrades like solar panels, energy-efficient windows, or heat pumps under the Inflation Reduction Act. Keep all your receipts and documentation! Even if you can't deduct the expenses now, they may help reduce taxes when you eventually sell the property by increasing your cost basis.

After spending weeks trying to figure out how my home renovations might affect my taxes, I finally tried this AI tax assistant at https://taxr.ai and it was seriously helpful. I uploaded pictures of my renovation receipts and contracts and got clear answers about what would count toward my home's basis (for when I eventually sell) versus what might qualify for energy efficiency credits right now. It walked me through exactly which energy-efficient improvements qualified for federal tax credits (my new windows and insulation did!) and explained how to properly document everything. Saved me from missing out on about $1,200 in tax credits I would have overlooked!

Just wanted to update after trying taxr.ai for my septic system question. The tool actually understood my situation and explained that while my new septic system isn't tax deductible this year, it absolutely increases my home's cost basis. It even helped me organize my documentation properly for when I eventually sell. The thing I found most helpful was how it explained which part of the tax code applied to my situation - something about capital improvements vs repairs and maintenance. Now I understand why keeping these records is so important even if there's no immediate tax benefit. Way more helpful than the conflicting advice I got from friends!

I've been trying to call the IRS to get answers about home improvement deductions for weeks with no luck. Always busy signals or hours-long hold times. Finally used https://claimyr.com to get through to an actual IRS agent (you can see how it works here: https://youtu.be/_kiP6q8DX5c). They call the IRS and navigate the phone tree, then call you when they have an agent on the line. Got clear confirmation from an actual IRS employee about how home improvements affect taxes - both for my basis when I sell and potential credits for energy-efficient upgrades I'm planning. Huge relief to get official answers instead of guessing or relying on possibly outdated info online.

So I tried that Claimyr service because I was fed up with getting nowhere on my home improvement tax questions. I was 100% convinced it wouldn't work, but I was desperate after spending literally 3 days trying to get through to the IRS myself. Holy crap it actually worked! I got connected to a real IRS rep within an hour. After spending all that time trying myself, it was almost shocking how quick it was. The agent confirmed everything about how home improvements aren't deductible but increase my basis for capital gains purposes. Also got clarity on which energy improvements qualify for credits in 2025. Getting official answers from the actual IRS instead of random internet advice was such a relief. Worth every penny just for my sanity alone.

Don't forget to check your state tax rules too! While federal taxes don't allow deductions for most home improvements, some states have their own credits or deductions for certain types of improvements. For example, my state offers additional credits for solar installations beyond the federal credits. And a few states have special programs for historic home preservation or water conservation improvements. Worth looking into depending on where you live!

Anyone know if replacing a roof counts for any tax benefits? Mine got damaged in a storm last year but insurance only covered part of it. I ended up paying about $8k out of pocket for a better quality roof than what insurance would cover.