Tax Deductible Home Improvement Projects

Let me guess; you are right off from an extensive remodeling project.  You did a major home renovation and spent an arm and a leg, and you are wondering if you can get tax benefits. If you’ve made home improvements in the past year or plan to, it is crucial to know if you can get a tax write-off.  We dig deeper to understand tax deductible home improvement projects.

Can you write off home improvement projects?

Home improvement could qualify for a tax write-off.  Yet, there is a catch.  Your home updates determine if you can qualify for a tax deduction. Home improvement projects that qualify for tax breaks are under capital improvements. The high-ticket home remodeling jobs can qualify as tax-deductible home improvements. Don’t confuse this with home repairs. Home repairs are general maintenance that is necessary because of wear and tear. For instance, it doesn’t qualify for a tax deduction if you paint or replace the leaking faucet.

What are the tax deductible home improvement projects?

Energy efficiency improvement

Are you planning to make an energy-efficient home improvement?  Did you install solar energy on your residential property recently? According to IRS, installing solar energy and water eaters can qualify for a tax credit. If your project qualifies for a tax credit, you can receive up to 26% of the total cost of the improvement project. Some of the projects that qualify for a tax credit under energy efficiency include:

  • Solar power and water heaters 
  • geothermal heat pumps 
  • biomass fuel
  • small wind turbines
  • fuel cells.
  • Insulation home improvements

Insulation is one of the most practical tax deductible home improvement projects for residential homeowners.

Are you planning to insulate the walls? This feature improves the livability of your home and conserves the environment. Insulating your home can qualify for tax deductions. Whether you want to insulate the attic or the basement, you count on a tax deduction for such projects. Remember, it also includes insulating your doors and windows.

tax deductible home improvement projects

Home additions

Major home additions are also another qualifying tax-deductible home improvement. Structural home additions add value and adapt your home to new use, and so it qualifies for a tax deduction. These improvements include:

  • New bathroom installation, 
  • A new bedroom, 
  • And any other home addition.
  • Home systems renovation

Improving septic systems, security systems, HVACs, water heating, etc., are tax-deductible home improvements. Those are also capital gain residential home improvements.

Remodeling for medical reasons

Remodeling for medical reasons is a rare home improvement project. But when it does happen, you will spend an arm and a leg to create a safe living environment for your loved ones. And that is why renovations for medical reasons qualify for tax deductions. Some of these improvements include:

  • Ramp additions, 
  • Widening the hallways, 
  • Adding shower handrails, 
  • And making your kitchen accessible.

Extensive interior home remodeling

Another tax-deductible home improvement task is interior remodeling. You can qualify for a deduction to cover the costs of renovating your home interiors. Some of the tax-deductible interior projects include:

  • The floors, fireplace, 
  • Installing built-in appliances,
  •  Finishing the attic and basement.

These are jobs that boost your property’s value, and they qualify as capital improvements.

Significant exterior improvements

Exterior home improvement projects can also qualify for a tax deduction.

Tax-deductible outdoor projects include:

  • Siding addition
  • swimming pool installation 
  • landscaping 
  • driveway restoration 
  • new roof addition 

Installing fences and renovating the walkways also are capital improvements. And this means they are also tax-deductible. Any restoration that adds value and adapts to a new use or prolongs its life is tax-deductible.


Tax deductible home improvement projects are a thing. And they can help reduce your taxable income when you sell your property. Call Pro Disposal if you have any property improvement projects underway.

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