Home repairs aren't deductible, but home improvements are. If you use your home solely as your personal residence, you don't get tax benefits from repairs. You cannot deduct any part of the cost. If you use your home solely as your personal residence, you cannot deduct the cost of home improvements.
These costs are non-deductible personal expenses. Under the current US federal tax code, home improvements are generally not tax-deductible. A repair is something that keeps your home in good working order, such as fixing a leaky faucet or replacing a broken window. Unless your repair adds value to your home, most repairs cannot be deducted from your taxes.
Like a home office space, you can cancel the cost of repairs to your rental property and then depreciate the improvements. The two basic requirements that qualify for home office improvements for a tax deduction are regular and exclusive use and that your home is the primary place of your business. There are two other important areas related to your home that can have a big effect on what you owe the feds, including when and if you make repairs to them. These deductions can be a little tricky, as it's important that any repair you make doesn't really qualify as home improvement.
While home improvements with garden variety won't give you a tax deduction right now, they could be helpful in reducing taxes if and when you sell your home. For example, if you use a bedroom in your home as a home office and pay a carpenter to install built-in shelving, you can depreciate the total cost as a business expense. While most home improvements aren't tax-deductible, they could generate tax benefits when you're selling your home. Home office improvements are deductible over time with depreciation, and repairs are deductible within the tax year in which they are completed, as they are deemed necessary for the maintenance of your business.
This is true even if the repairs you make are for the benefit of your entire home and not just the part of your home you rent. The good news is that if you qualify for this tax exemption, both repairs and improvements may be eligible, as long as they are only in the parts of your home that are used for business. However, if the repair adds value to your property (such as replacing the roof), it could be considered a home improvement. If you deducted sales taxes on the building or purchase price of your home as an itemized deduction in Schedule A, you cannot include these sales taxes as part of your home cost base.
Mark Steber, director of tax information for tax preparation company Jackson Hewitt, told The Balance in an email that home repairs such as fixing gutters or painting a room are considered general maintenance rather than capital improvements. They sound similar (and are sometimes used interchangeably), but in reality there is quite a stark difference between the repairs you make to your home and improvements.