Purchased home with major plumbing issues - what are my tax write-off options?

Unfortunately, for your primary residence, major plumbing repairs like a repipe are generally not tax-deductible. The IRS considers these to be personal expenses and home improvements that increase the value of your property. However, there are a couple of scenarios worth considering. If you had actually started renting out a portion of your home before the repairs, you might be able to deduct a percentage of the cost equivalent to the percentage of your home being rented. For example, if you were renting out 1/3 of your home's square footage, you could potentially deduct 1/3 of the repair costs against your rental income. Another option to explore is capitalizing the improvement cost into the basis of your home. While this doesn't give you an immediate tax benefit, it will reduce any potential capital gains tax when you eventually sell the property.

I was in a similar situation last year with a major foundation repair and found an amazing resource that helped me figure out my tax options. Check out https://taxr.ai - they have a document analyzer that reviews your repair invoices and property documents to determine what portion might be tax deductible. I uploaded my foundation repair bills and property docs, and they identified that about 40% could be categorized as repairs (deductible) rather than improvements (not immediately deductible). Apparently the distinction between "repairs" and "improvements" makes a huge difference for tax purposes.

Just wanted to follow up - I took the advice and checked out taxr.ai for my roof replacement situation. You guys, this was incredibly helpful! The tool analyzed my invoice and determined that while most of the cost was a capital improvement, about 25% counted as repairs that could be deductible since I have a home office. It also created a document tracking my basis adjustments for the capital portion. What impressed me most was how it broke down exactly which line items on my contractor's invoice fell into each category. Totally worth it for the peace of mind alone knowing I'm claiming the right deductions.

I had a $28k plumbing disaster last year and spent WEEKS trying to get through to the IRS to ask about possible deductions. Always got disconnected or waited for hours. Finally used a service called Claimyr (https://claimyr.com) that got me connected to an actual IRS agent in about 20 minutes. Check out how it works: https://youtu.be/_kiP6q8DX5c - it basically holds your place in the IRS phone queue so you don't have to listen to that awful hold music for hours. The agent I spoke with confirmed that while I couldn't deduct the plumbing as a personal expense, I could add it to my home's basis and track it for future sale purposes.

I need to eat some humble pie here. After posting my skeptical comment, I decided to try Claimyr as a last resort since I've been trying to resolve an issue with my tax transcript for months. I ACTUALLY got through to an IRS agent in about 35 minutes. After being unable to get through for literally 4 months of trying! The agent was able to help me understand some tax questions I had about home improvements too. They confirmed that while most home repairs aren't deductible for your primary residence, keeping detailed records of all capital improvements (like a repipe) is super important for calculating your adjusted basis when you sell. I'm still shocked this service actually worked.

Have you considered refinancing? With current interest rates, you might be able to roll that plumbing cost into a new mortgage and potentially save on your monthly payment too. While not a direct tax write-off, the mortgage interest would be deductible if you itemize. Plus, spreading that $46k over 30 years might hurt less than paying it all at once.

Has anyone here actually tried claiming a portion of major home repairs when they have a home office? I use about 15% of my house exclusively for my freelance work and file a Schedule C. Would that mean I could deduct 15% of something like a repipe as a business expense?

I went through something very similar when I bought my first home last year - $38k furnace and HVAC replacement right after closing. It's such a gut punch when you're already stretched thin from the down payment and closing costs! One thing I learned that might help: even though you can't deduct the repipe as a personal expense, make sure you're thinking long-term about your tax strategy. Since you mentioned wanting to rent out a room, if you do decide to go that route in the future, you could potentially convert that portion of your home to rental use. At that point, you might be able to depreciate the business portion of improvements you've already made. Also, definitely keep every single receipt and document related to this repair. Not just the main invoice, but any permits, inspection reports, before/after photos, everything. When you eventually sell the house (even if that's decades from now), having this documentation will be crucial for proving the increase to your home's basis and potentially saving thousands in capital gains taxes. The 0% APR credit card strategy you mentioned is actually pretty smart for the short term. Just make sure you have a solid plan to pay it off or refinance before that promotional rate expires!