legomom922 07:01 AM 04-05-2011
We had installed a hose, spicket etc to the back of our home and moved the one from the inside of the garage to the outside of the house. It required alot of plumbing supplies, tools, etc. We had to purchase everything to do this project. So the whole project cost appx $200, so do I claim & deduct each individual item as a purchase, or do I add the entire $200 cost of the project to the value of the home? I'm not sure if I am suppose to add together everything on all the reciepts. I am assuming I just add the whole cost to the value of the home, but I have been wrong before. LOL
ETA: We also had to purchase some tools to do this job, such as a hammer drill, a torch kit, pipe cutter, which can be used on other things, but needed for this project, so again, how do I break the cost down of this project? Would I claim tools as a t/s% deduction or is that now condsidered as part of the home improvement project?
TomCopeland 10:38 AM 04-05-2011
Deduct the time-space % of the $200 as a house repair on Form 8829. Same thing for all the tools.
legomom922 03:26 PM 04-05-2011
Originally Posted by TomCopeland:
Deduct the time-space % of the $200 as a house repair on Form 8829. Same thing for all the tools.
Tom, you are confusing me friend..last night on my other thread about home impovements you said it was a home improvement, so I just need clarification if it s repair or a improvement. LOL
So all the needed parts that I bought, I claim as a deduction?
TomCopeland 04:56 PM 04-05-2011
Last night I didn't know how much this cost. At $200 I think it's a stretch to call it a home improvement. Claim all as a deduction.
legomom922 05:30 PM 04-05-2011
Ok got it. I was applying the $100 rule. LOL
legomom922 04:50 PM 04-06-2011
What is the general rule of thumb cost wise to call something a home improvement anyway?
Abigail 07:48 PM 04-16-2011
Originally Posted by legomom922:
What is the general rule of thumb cost wise to call something a home improvement anyway?
I'm wondering the same thing. Just for future reference.
TomCopeland 03:41 PM 04-17-2011
Anything that costs less than $100 should be deducted in one year and not depreciated. This is a rough rule of thumb. In general, a home improvement is something that increases the value of a home (remodeling, new roof, new furnace, deck, kitchen counter tops, etc) whereas a repair/maintenance is something that maintains the value of a home (paint, fixing broken class, etc.).