What Home Improvements Are Tax Deductible 2024?

If you’re planning an extreme home makeover because you think you’ll be able to write off some of your improvements on your taxes, you might want to pump the brakes a bit. In general, home repairs and renovations aren’t typically eligible for tax breaks, credits, or deductions. Although, as with most things tax-related, there are a few caveats you may be able to consider.

Home Improvements That ARE Tax Deductible

Home Office – Business & Self Employed Spaces
If you’ve been thinking about turning a section of your basement into a home office, 2024 might just be the year to do it. Transforming a portion of your home into a dedicated office space isn’t merely a good way to turn a wasted space into a productive one, it can also unlock valuable tax advantages. The home office deduction allows eligible individuals to claim a portion of their housing expenses, such as rent or mortgage interest, property taxes, and utilities. Of course, researching and understanding the intricacies of this tax break is crucial, and you’ll need to make sure that your home is your principal place of business, complete with a space specifically designated for that business in order to be eligible.

Necessary Medical Improvements
Need to make home improvements or upgrades because of a medical reason? Whether you need to widen your hallways, install wheelchair ramps or chairlifts, or another similar upgrade, you might qualify for certain deductions, or be able to write the improvements off on your taxes as medical expenses. The IRS does cover some medical expenses if they are meant to alleviate or prevent pain caused by mental or physical disabilities. Of course, the aforementioned improvements must be being made for someone permanently residing in the residence in question, so be sure to research before making any costly commitments.

Energy Efficient Additions or Equipment
Taking steps toward a more energy efficient home might land you some tax credits. The IRS incentivizes such upgrades with tax credits, which may be equal to a percentage of the cost of the qualifying energy-efficient equipment or upgrade. Eligible upgrades might include:

  • Solar panels
  • Home batteries
  • Heat pumps
  • Energy-efficient water heaters

Since qualifying energy efficient upgrades can vary, it is always recommended to check the eligibility before moving forward with any updates to your home.

Rental Property Improvements
If you rent out a portion of your home, you might be able to depreciate the expenses, so you wind up potentially paying less taxes on the collected rent. Improvements made only to the rented portion of your home will be eligible for full depreciation, while extenuating improvements might be able to nab a percentage.


Home Improvements That Are NOT Tax Deductible

Unfortunately, even though home improvements are often costly and time consuming, most home improvements or repairs in primary residences are not eligible for tax deductions. These include upgrades like:

  • New roof
  • New air conditioner
  • Intercoms or home security systems
  • Kitchen or bathroom remodel
  • Home repairs
  • Fixing gutters, foundations, doors, painting, etc.


Benefits of Home Repairs that Increase Home Value

Of course, tax deductions and breaks aren’t the only reason to make home improvements. Aside from making your space suited to your wants and needs, these upgrades often and usually increase the value of your home, so when and if you choose to sell, you might get your money back, along with the general appreciation of the house.

Upgrading appliances, modernizing fixtures, and enhancing the overall aesthetic can significantly boost a home’s market appeal. And since buyers often prioritize well-designed, updated kitchens, making those improvements will likely allow sellers to recoup a significant portion of the renovation costs when selling their home.


Get in Touch with a Professional

Treadstone is not a tax agency or financial advisor, but we work with a lot of professionals who are. Connect with us, and we will make sure you have all of the information you need to move forward!

Treadstone Funding and its employees are not CPAs or financial advisors. Not financial advice. All information provided is for educational purposes only.



Can you write off home improvements?
Generally speaking, home improvements are not eligible for tax deductions, although there are certain caveats that may allow for tax discounts.

Does a new roof qualify for energy tax credit?
If your new roof meets the IRS’ criteria to be an “energy upgrade,” it may be possible to qualify for a tax credit. Talk to a professional to get the most accurate information.

Is a tax break worth the hassle?
Yes! Tax breaks are worth taking the time to secure as long as you do your research, talk to a tax professional, and have a plan in place!

Understand the caveats to what home repairs qualify for tax deductions