money sectionmoney sectionThe Internal Revenue Service does not allow individual taxpayers to take a deduction for the cost of an asset not used in a trade or business, such as a screened porch. The only exception to this rule is if the porch suffers damage or becomes totally worthless as a result of a casualty. A casualty is a sudden event such as a hurricane or car accident that is the direct cause of property damage.
Home improvements can add value to your home even when the market is down. According to Interest.com, the three most valuable home improvements are adding upscale siding, adding a wooden deck and minor kitchen remodeling. There is no direct deduction for money that you spend on improving your house. However, there are a number of indirect savings that you can benefit from on your taxes for expenses you incur for home improvements.
Home improvement loan interest is almost always tax deductible if the home is a primary residence. Consult with a tax attorney to work out the details of loan tax deductions with tips from a financial adviser in this free video on home loans.
