Results 1 to 6 of 6
  1. #1
    Join Date
    May 2004
    Location
    Rapid City, SD
    Posts
    7,414
    God I hate this season! I don't mind paying taxes (well, too much anyway), what I hate is all the fine print, tricky to find deductions and all that jazz.

    I know, the answer to most of my questions could be done by a tax professional, but what fun would that be?

    Here's a few questions for y'all. This is my 1st time owning a home, what kinds of deductions are avalible? I think I remember someone saying all the interest is, plus any home improvements. Is there any minimum for the home improvements?

    Also, I plan on installing a heat pump in my house sometime this year. I'm doing all the work myself, buying the materials from a wholesale company that is great to work with. Long story short... I'm not exactly going to have one final recipt to turn in. Do I just save the individual recipts and turn them in for everything I bought? And since I'm in this deep, is there anyway I can get a deduction for my labor?

    How about buying tools (for home improvement and also for work)? I doubt I'll spend many thousands or anything, but if I could get something back that'd be nice too.

    Also, maybe you experts could give me your top 3 deductions not many people know about?

    Thanks fellas!

  2. #2

    deductions?

    Turbotax

  3. #3
    Join Date
    Feb 2003
    Location
    NH & Cebu
    Posts
    1,611
    Originally posted by amickracing
    God I hate this season! I don't mind paying taxes (well, too much anyway), what I hate is all the fine print, tricky to find deductions and all that jazz.

    I know, the answer to most of my questions could be done by a tax professional, but what fun would that be?

    Here's a few questions for y'all. This is my 1st time owning a home, what kinds of deductions are avalible? I think I remember someone saying all the interest is, plus any home improvements. Is there any minimum for the home improvements?

    Also, I plan on installing a heat pump in my house sometime this year. I'm doing all the work myself, buying the materials from a wholesale company that is great to work with. Long story short... I'm not exactly going to have one final recipt to turn in. Do I just save the individual recipts and turn them in for everything I bought? And since I'm in this deep, is there anyway I can get a deduction for my labor?

    How about buying tools (for home improvement and also for work)? I doubt I'll spend many thousands or anything, but if I could get something back that'd be nice too.

    Also, maybe you experts could give me your top 3 deductions not many people know about?

    Thanks fellas!
    Interest, property taxes & that's about it I think. I'm probably missing something, but I don't remember improvements being tax deductible umless it's an income property. I believe you can only deduct improvements if you had a capital gain on the sale of a house. My property is 1/3 rental, and improvements are written off over 15 or 30 years if I remember right. Anybody?

    I run my business out of the house, but I don't even take the home office deduction, because I've been told it sets off bells at the IRS. Also, if you sell your house, I think it comes back to haunt you tax-wise.

    But I'm not an accountant. I pay somebody to do that for me.

  4. #4
    Join Date
    Mar 2003
    Location
    Cincinnati
    Posts
    7,977
    I'm pretty sure you can't deduct home improovements. If you get like a home equity loan to make the improvments you can deduct the intrests on that.

  5. #5
    The only direct home deduction is for real estate property taxes and mortgage interest.

    And then only the amount that is above your standard dedcution.

    But for a new home buyer interest is usually a big, big item. Less so near the end of the mortage.

    But typically you now have enough deduction that other ones can be claimed.

    That include personal property taxes, charitacle deductions. And if you are employeed some business expenses and medical expenses (but they have to be fairly high).

    Improvement to personal home are not deductible. However you should track them They are used to adjust your cost basis. Not as import these days when selling because you get an exclusion of $250k (single) or $500k (married) of capitacl gains (if you live in the house 2 years).

    But if you convert it to rental or end up with office in the home (and that is a lot more open then it sused to be, I have claimed it for maybe 20 years without any problem).

    My suggestion is that TOMORROW find a tax pro and spend $50-100 for them to go over your situation.

    Veryshortly they will be too business to deal withanyone that will not have then do their taxes (which you might want anyway, but this is good time for learning) and you will find what documentation that you need, thing that you might do differently this year and time to ask what if questions.


  6. #6
    Join Date
    Jun 2004
    Location
    Richmond Virginia
    Posts
    1,078
    Congratulations on buying your home. Mortgage interest and your property taxes along with your state taxes and local taxes are the most common deductions. You cannot deduct home expenses for repairs or improvement. If you don’t want to contact and pay a professional for help with your taxes, I would highly recommend Turbotax. It will step you through your return one step at a time and is easy to use. The next most common deductions are medical expenses (can only deduct portion which exceeds 7.5% of adjusted gross income), job related expenses (can only deduct portion which exceeds 2% of adjusted gross income), and charitable contributions. The job related expenses can be a good one if you keep track of every tool you buy, uniforms, gloves, boots, etc.
    If you are borrowing or using a credit card to finance your improvements, you'll want to convert that to a home equity line as soon as you can so the interest will be deductible. Turn all "bad debt" into "good debt".

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Comfortech Show Promo Image

Related Forums

Plumbing Talks | Contractor Magazine
Forums | Electrical Construction & Maintenance (EC&M) Magazine
Comfortech365 Virtual Event