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I purchased a house in June of 99. Prior to the loan going through, the roof and deck had to be replaced at an out of pocket expense for me. Are these improvements deductible? This is my primary residence.

***Improvements to your personal residence are added to the basis of your property. The cost of purchasing the property, costs of buying and selling, and improvements made, make up the basis from which you subtract selling price in order to determine gain.

Under current law, you needn't be too concerned about that because there is an exclusion of the first $250,000 gain ($500,000 in case of married couple filing jointly).

It's a good idea to keep track of such expenses, even though there is little reason to believe you will ever have to account for such gains. Why?? Because the law could change or, you may decide to someday use the property as a rental property. If you convert to a rental property, it will be important to establish basis so you may take the proper depreciation deductions.

Happy Holidays!!!=:)

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