I recently spent almost $2,000 dollars on replacing the fence at my residence. I’ve heard that home improvements are tax deductable, but repairs are not. Would this be considered an improvement if the old fence was not damaged?
Asked by:WeaponiZed
Is the Purchase of a New Fence Tax Deductable?
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Repairs or improvements to a personal residence are not tax deductable. What you heard was for income property.
You add the cost of the fence to your cost basis.
If this is the 2nd time you’ve added a fence, you remove the cost of the previous one first.
only if they are energy efficient can you deduct home repairs or upgrades. No fence is energy efficient! Sorry
Keep records of the cost. Although it’s not deductible it will increase your cost basis at sale time and reduce any capital gains tax at that time, if any.