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Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience:  15+ years tax preparation and tax advice.
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Can I deduct the new roof and new boiler I put in my home in

Customer Question

Can I deduct the new roof and new boiler I put in my home in 2008? I live in Elmwood Park Illinois. I own a "Chicago style Bungalow" built in the 1920's.
Submitted: 8 years ago.
Category: Tax
Expert:  Wendy Reed replied 8 years ago.

Hello there,

 

If this is your primary home and it is used for personal (not rental) purposes, then you may not deduct these expenses, as home improvements for personal property are not deductible. However, you may add the cost of these items to the "basis" of your home. When you sell, your gain will be calculated as the difference between the sale price and the basis of your home, so these improvements will effectively lower your gain.

 

Unfortunately there are no new tax laws for 2008 that allow a deduction or credit for these items.

Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3346
Experience: 15+ years tax preparation and tax advice.
Wendy Reed and other Tax Specialists are ready to help you
Customer: replied 8 years ago.
How about if the improvements save energy?
Expert:  Merlo replied 8 years ago.
Hello tincup,

The federal tax credits for energy efficiency improvements expired at the end of 2007.

In October of 2008 another bill was passed to extend these credits, and the credits will once again be available in 2009. However, improvements made during 2008 are not eligible for a tax credit.

Below is a website which will give you the details of the improvements in 2009 which may be eligible for a tax credit.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you.

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
Expert:  Wendy Reed replied 8 years ago.

Hello again,

 

Unfortunately the credit for energy related improvements for personal homes was not extended for 2008, but is available in 2009. I have a lot of clients who have this problem and I agree it is very frustrating.

 

Please let me know if there is anything else I can assist you with.