Can You Save Money on Taxes With Home Improvement Projects? (2024) [Video]

You might have heard you can claim home improvements on your tax return to pay less in federal taxes. While home improvements can indeed provide tax benefits, not all projects qualify for deductions. 

In this article, I’ll clarify which upgrades legitimately reduce your federal tax burden, so you can maximize savings. Specific criteria determine whether a remodel is eligible for write-offs. Following the recommendations here helps you claim valid deductions and avoid issues with the IRS come tax season. Stay informed and claim every legal tax break to keep more of your hard-earned money.

In general, home improvements and home repairs are not tax-deductible. However, projects that add to the value of your home can adjust your cost basis, effectively decreasing the taxes you owe for capital gains when you sell your home.

Let’s look at the main differences between home repairs and home improvements when it comes to the …