I was told that you could deduct home improvement expenses until the year you sold your house. Is this true?

Home improvement costs generally increase your adjusted basis to your house and not deductible during current year. If you took a loan to pay for these improvements, the interests you paid are deductible. Also, if your home improvement is only repainting the house, it is not considered home improvement and you cannot add the costs to your adjusted basis regarding capital gain taxes. But if the repainting job is part of a bigger home improvement project, then it’s ok to add the costs to the your adjusted basis.

Now make sure you keep very good records on the costs for home improvement so you don’t run into problems when you sold your home and report it to the IRS.

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