|
News & Info
|
 |
 |
Seller Signup...
Quality Service, Seller or Tradesperson? Sign Up Now!
|
|
Home & Garden Articles
Tax Deductible Capital Improvements On One's Home
Wed 17 Jan 2007 - 05:42
Tax Deductible Capital Improvements On One's Home
By Dennis Estrada
Many home improvements are capital improvements. The Capital Improvements are tax deductible according to IRS if the home improvements meet a number of conditions. The home improvements are permanent addition to the home that increases the value of the home. Hence, the home improvements are substantial in which the value of home property appreciates, the life of home property prolongs, and the functionality of home property increases.
For example, placing a fence, adding a room, installing a driveway, implementing a swimming pool, installing a new roof, setting a new built-in heating systems are capital improvements.
The capital improvement increases the value of your home. For example, adding a new room increases the value of home. The new room increases the ability of the property to earn more income. Thereby, the value of home property increases as well.
Another example, adding a garage increases the value of home. Renters will pay extra for a parking space. And again, the new garage increases the ability of the property to earn more income. Thereby, the value of home property increases as well.
On the other hand, the home repairs are not home improvements according to the IRS. Repairs are expenses that keep the property in good repair. And, the rental property owner can claim the as expenses on the year that the expenses are made.
For example, repainting the walls, patching the roof, installing the wallpaper, replacing the carpet, sealing the links, and repairing the windows are home repairs.
To be able to claim capital improvement tax deductible, the homeowner needs to use the Depreciation Method. The Depreciation Method is a way to recover the cost of capital improvements thru depreciating the expense over the life expectancy of property.
Dennis Estrada is a webmaster of mortgage calculators, and increases the value of your home website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.
Article Source: http://EzineArticles.com/?expert=Dennis_Estrada
http://EzineArticles.com/?Tax-Deductible-Capital-Improvements-On-Ones-Home&id=420440
Looking for information on General Home Improvement, Find a supplier at HomeWise.ie
back to General Home Improvement articles
back to all home & garden articles
|
|