Thinking of selling your house in Glendale? Want to know if the home improvements you’ve made to the house will reduce your tax bill when you sell?
You’re not the only one. Many homeowners are wondering if home improvements are tax-deductible and how they will impact the bottom line.
If you don’t have the time or don’t wish to deal with tax matters, cash home buyers in Glendale WI, like Sell House Fast Milwaukee, will purchase your home in a quick and convenient manner. We buy houses as is, meaning you can skip the repairs, save money, and close in 14 days or less.
Now, let’s observe how making home improvements affects your taxes (and which ones you can write off).
What Are Tax-Deductible Home Improvements?
Tax-deductible improvements are referred to as capital improvements. They’re basically improvements that add value to your home, extend its life, etc. They are included in your home’s cost basis, which means they reduce how much you’ll pay in capital gains tax when you sell.
Here are some examples:
- A new roof
- Finishing a basement or adding a room
- Upgrading electrical or plumbing systems
- Installing new windows or central air conditioning
Always save receipts and records for any big project. These will be priceless at tax time or in the event of an IRS audit.
Repairs Vs. Improvements: Know The Difference
Not all projects are deductible. Maintenance—fixing a leaky pipe or repainting walls—is considered regular maintenance and typically not deductible. Improvements do add permanent value and will reduce your tax bill when you sell.
Other Tax-Deductible Upgrades
Energy-Efficient Upgrades
Solar panels, insulation, and energy-efficient windows or HVAC equipment are not deductible when you sell but typically tax-credit eligible in the year you install them. This reduces what you owe or increases your refund.
Landscaping That Adds Value
Basic yard maintenance doesn’t count, but significant improvements like a new driveway, retaining wall, or patio may qualify as capital improvements if they increase your home’s value.
Medical-Related Home Improvements
If you’ve made modifications for medical purposes—such as adding a wheelchair ramp, widening doorways, or making bathrooms more accessible —these can be deducted as medical expenses and added to your cost basis.
Improvements That Don’t Count
Here are examples of non-deductible expenses:
- Painting
- Replacing a broken appliance
- Fixing gutters
- Minor cosmetic updates
While these are important to do, they don’t add long-term value and therefore won’t lower your tax bill.
Final Thoughts
Selling your home in Glendale, WI, and figuring out which home improvements are tax-deductible doesn’t have to be confusing. Focus on keeping records of major upgrades and consult a tax professional for advice that fits your unique situation.
However, if you’re overwhelmed by repairs or tax questions, there’s an easier way. We buy houses in Glendale WI, no matter their condition, and we’ll make a fair cash offer in less than 24 hours. By working with cash home buyers in Glendale WI, you can skip the repairs and paperwork and sell your house fast.