Are home improvements tax deductible?

IT Guy
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Are home improvements such as remodeling, painting, and replacing the carpet tax deductible (especially if I am self employed and work from home)?
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EE Topic Advisor, Independant Technology Professional
I see you are in US, so it probably varies from state to state. So here is my own findings:

For a home office you can deduct a percentage of all expenses related to your home. The percentage is usually the sq. ft. of your office divided by the sq. ft. of the whole house.

The rest of the improvement to your home are not deductible unless specifically allowed by a government program (like energy efficiency improvements). The other improvements generally are reflected in the increase in value of your home which leads to higher property tax or taxes on the sale of your home.

(edited for clarity)
IT GuyNetwork Engineer


I live in California.
This is the sort of question that really should be answered by a tax professional.

One thing to consider that that some home improvements are added to the cost basis of your house when you sell it, giving you a tax benefit.  If you have deducted some of that as a home office expense, you may not be able to add it to the cost basis.  It can get complicated, hence the suggestion to find a professional who has some responsibility to answer it accurately.

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