1remodel480320-1

Can you teach me about tax refund for home improvement.?

I don't know much about tax return.

http://blip.tv/the-handy-goddess/bath-renovation-1-how-to-build-a-faceframe-and-cabinet-6691053

Can you tell me about rule the home improvement tax refund in 2011 or 2010?

How much can we get max?

What things does it call home improvement?

Do you think it is home improvement cost such as removing trees and doing gardening work by arbors.

And anything else I must know.

Thank you.

Home improvements, with the exception of some limited deductions/credits for energy efficiency upgrades are not tax deductible. So you get no benefit when filing taxes.

However, home improvements are added into the base cost of your house which reduces possible capital gains taxes when you sell. For example, you buy a house for $100,000, make $50,000 in home improvements and sell for $200,000. Without the improvements, the cap gains is sale price minus buy price or $200,000 – $100,000 = $100,000. But with the home improvements added in, your base price becomes the $100,000 buy price plus $50,000 improvements or $150,000 which lowers the capital gains to $50,000.

Note however, that there is a $250,000 individual capital gains exemption for selling a house ($500,000 for a couple), so to take advantage of any of the improvements, your house would have had to increase in price at least $250,000/$500,000.

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