My home needs a new roof and I was also thinking of upgrading both bathrooms in my house. I really dont want a loan so I am considering taking money from my 401k and I am aware of the tax implications. Does the IRS allow the cost of home improvements such as what I am looking to do to be written on on my tax return?
You can write off part of the cost for insulation and a metal roof. See the attached.
The only other way I know about is when you sell the home, you can add the cost of home improvements to your cost basis. That way there's less profit to pay taxes on. You'll only need to do this if you don't qualify for the rollover exemption.
Rating: 4 out of 5