Can Foundation Repairs Be Tax Deductible?

Regular repairs are necessary to maintain your house in good condition. House repairs are not tax-deductible, but home upgrades may be tax-deductible. Let's take a deeper look at how foundation repairs can be tax-deductible.

What are home repairs?

These are the activities undertaken to maintain your home in good condition for tax records. Home repairs improve the appearance of a house making it better than it was before. Common home repairs include replacing broken window panes, repainting, patching a leaking roof, and fixing floors or gutters, among others.

What are home improvements?

These are the activities undertaken to improve the quality of the house. Home improvements do affect the appearance and structure of the house. Some of the upgrades include: the installation of heating systems, strengthening your foundation, and installing a deck or a roof, among others. Parkrange offers a wide variety of quality home improvement services at an affordable price.

When can foundation costs be tax-deductible?

If you are eligible for a home office deduction

Home repairs costs are usually tax-deductible when using a portion of your house as an office for a business. To be eligible for this deduction, your business should be fully registered and legitimate.

Once eligible for this deduction, you can deduct all the foundation repairs to your home office. Foundation repair costs that affect your entire house are deductible depending on the size of the office space you use. For instance, if you use 40% of your home as an office, you can deduct 40% of the total foundation repair cost.

If you lease out part of your home

Renting out part of your home is another way to deduct a portion of the foundation costs. The foundation repair costs may be deducted from your monthly rental income. These costs will be deducted depending on the part of the house you decide to rent out. The repair costs will be deducted fully if you completely rent out the house.

When foundation repairs cannot be tax-deductible

When you live on the property yourself​

If you live on the property for residential purposes, you will bear any cost of foundation repairs. This is because you are not using the house to generate any substantial income that can be used to cater to the expenses.

Final Thought

At times, foundation repairs may be tax-deductible, and at other times they may not. Regardless of if your foundation repairs qualify for tax deduction or not, one thing is certain, it is critical to get them repaired. When you need this work done, contact our foundation repair specialists’ team here at Parkrange Construction.

Published on 4-8-2022