Home repairs are not tax deductible, but home improvements may be. If you use your home solely as your personal residence, you cannot deduct any part of the cost of repairs. These costs are considered non-deductible personal expenses. Under the current US federal tax code, home improvements are generally not tax-deductible.
However, if you use a portion of your home for business purposes, you may be able to depreciate the cost of improvements over time. 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. 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. Although home improvements may not qualify for a tax deduction, they could generate tax benefits when you're selling your home.
To qualify to depreciate home improvement costs, you must use a portion of your home other than your personal residence. A repair is something that keeps your home in good working order, such as fixing a leaky faucet or replacing a broken window. However, if the repair adds value to your property (such as replacing the roof), it could be considered a home improvement. It's important to keep detailed records of your expenses related to any home improvement in order to get the most out of your improvements when the time comes.
Several types of home improvement projects may be eligible for a tax cancellation, but it ultimately comes down to the type of remodel you are completing and whether it is classified as a repair or improvement.