Which Home Renovations are Tax-Deductible?: Your Guide to Capital Improvements
Capital improvements increase your home’s value and appearance — while lowering the amount of taxes you owe when you decide to sell. What exactly is a capital improvement? According to the IRS, a capital improvement is any upgrade made to your property that does at least one of the following: Increase the property’s value Extends the life of the property Adapts the property for a new purpose How do capital improvements affect your taxes? When you make a capital improvement, t