Having home remodeling done, would like to understand any tax breaks

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I have a fairly large home remodeling project started in 2023 which is in its initial phase and going to last through part of 2024. Is there any part of the expense that I could get a tax break on?

FWIW the remodel would add extra sq footage along with additional rooms.

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  • BenjaminS
    BenjaminS FreeTaxUSA Agent
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    If the remodeling being done is for a personal residence or main home, then none of the expenses can be deducted. When you sell your home is when the tax breaks would kick in since the costs of the improvements would be added to the basis of your home.

    If the remodeling being done is for a rental property, then you would be able to report the addition/improvements on your Schedule E and depreciate the addition/improvements which would lower your rental income.

  • ideazinfinite
    ideazinfinite Member Newcomer
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    The remodel is for personal residence. I heard from someone that the sales tax on the remodel costs is tax deductible immediately, is that incorrect? And if not, how significant of an impact that would make?

  • Kaybee
    Kaybee Member Level 3
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    You can deduct up to $10,000 in sales tax or income taxes but not more than $10,000