If you use your home only as your personal residence, you obtain no tax benefits from repairs. Additionally, you cannot deduct any part of the cost.
However, the only way you can deduct all or a portion of the cost of home repairs for your residence is if you qualify for the following:
- You have a business or use part of your home as an office for business
- You rent out a portion of your home
If you qualify for home office deduction, you can deduct 100% of the cost of repairs you make to your home office. Repairs that benefit your whole house are deductible based on the percentage of home office use. For instance, if you use 30% of your home as an office, you may deduct 30% of the cost to repair your home heating and air conditioning unit.
On the other hand, home repair costs when you are renting out a portion of your home can be deducted as “rental expense.” This amount is taken from the rental income you receive.
We are also asked, “What about home improvements?” The good news is that they are treated differently than home repairs. By definition, a home improvement makes property significantly more valuable and/or useful than it was prior to the upgrade. Therefore, they can help reduce the amount of taxes you have to pay when you sell your home at a profit.
If you are interested in making HVAC repairs in the Los Angeles area, schedule your service with our Glendale HVAC technician at Moe Plumbing Services today.