Will I receive a tax benefit if I purchase a home that I plan to improve?
This housing market continues to provide ample opportunities to purchase homes needing cosmetic repairs or other improvements which lenders may not require but which give clients “cold feet.” Will tax benefits warm them up? Maybe.
Inman News’ Stephen Fishman (read about
Stephen’s law background here), has critical information to help your clients save precious tax dollars. “Home improvements can provide homeowners with tax benefits when the home is sold because the cost is added to the home's tax basis. In contrast, home repairs (there is an important distinction) provide no tax benefits at all.”
Learn how to turn repairs into improvements for tax purposes in this helpful article:
How to Avoid the House-Repair Tax Trap.