We understand that it can be tricky navigating through the world of financial services. Everyone seems to have an opinion, and it can become difficult knowing what to believe. We’ve created this series, “Financial Fact vs. Fiction,” as a way to present and debunk some of the most popular financial myths.
Fiction: One of the great benefits of buying a home is that you can deduct the cost of home improvements from your taxes.
Fact: There are tax benefits to purchasing a home, but you cannot deduct the money you spend on home improvements from your taxes while you own the home. You can save the receipts from these improvements, however, and you may be able to use them to raise the cost basis (i.e., what you originally spent) of your home. This could reduce the gain you receive—and could be taxed on—from the sale of the house.
Last Updated: 06/09/2010