ANSWERS: 5
  • Not directly, though if you live in a state with sales tax, you can deduct the state sales tax. Keep your receipts, though. When you sell the house you can deduct the cost of remodeling against the rise in value of the property - depreciation via remodeling.
  • can you add expenses to your tax on a two family home?
  • It is allowed to deduct a portion of home improvements as a percentage based on the business use of your home. If you have a home office for your business. This is related totally to the percentage of your home space that is dedicated to your home office.
  • You can deduct anything you want. I'm pretty sure you could write off $10,000 as "Colombian Drug Money." Now, whether you'd get away with it, that's another story.
  • Some improvements are eligible for a tax rebate if they meet certain energy-efficiency standards. For instance, I got a $300 rebate for installing a tankless water heater. Check this web site to see if any improvements you have made will qualify: http://www.energystar.gov/index.cfm?fuseaction=rebate.rebate_locator

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