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The Absolute Insanity of Not Buying a Home When You’re Young
(www.riskology.co)
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this post was submitted on 31 Aug 2023
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Finance
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From what I understand, at least in the US, you can write off home improvement costs in your taxes if you're willing to itemize. It's not for everyone of course, but for people who spend a lot of money improving their home, it could help reduce the financial burden.
This is effectively not true.
Any capital improvements to your home add to the homes “basis”. When you sell, your gain is the sales prices of the home less the cost of the home less capital improvements less cost of the sales. The US already allows for a significant exclusion on the gain on the sale of a primary residence from income taxes so overwhelmingly nobody will get a tax benefit from a new roof or bathroom or whatever.
No. Only adjusts basis when you sell. There are tax benefits and a lot of them. Some general but a lot very specific. Lot depends if you make money on the property. My house I have had 20 years. Maybe made 1% a year return while the cost is 5%. Typical house returns are about inflation though mine is less. Typical investment return in the market though are 5 to 10% above inflation.