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Financial Planning / Tax Strategies
|Subject: Q: Deducting home improvements?||Date: 3/28/2009 10:56 PM|
|Author: KLTolly||Number: 105436 of 124995|
I believe that I have been given bad information - I'm a little skeptical, and can't find anything on the IRS website to support this in any fashion - hoping someone can set it straight for me.
Last year, due to some really outrageous family circumstances, we did nearly $36,000 in improvements to our home in order for our state protective services to allow us to meet regulations to foster my baby niece and nephew. Added bedrooms, upgraded A/C and heating, etc. Nothing so energy efficient or "alternative" so as to qualify us for the "green" credits, though.
A well meaning family member insists that these costs are deductible, and knows people who write these things off annually. I always thought that I had to track these expenses to add to the cost basis of the home for such time that we decide to sell, in order to minimize capital gains. I've carefully monitored and documented all other capital improvements over the last 15 years in this belief.
While I am highly skeptical of taking a massive deduction like this, if there is, in fact, anything to allow this, can someone guide me to the correct publication or reference? I'd hate to leave this on the table if it is legal, but honestly thought this went the way of consumer interest deductions.
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