"Think major renovations like kitchen remodels, roof replacements, or adding a new room—not just minor cosmetic updates."
That's exactly how my accountant explained it too. He mentioned something about the improvement needing to be "permanent" and add clear value. But honestly, the line between what's substantial and what's cosmetic can get blurry...like, would replacing old carpets with hardwood floors count? Seems substantial enough to me, but apparently it's a bit subjective. Curious if anyone's had experience claiming something borderline like that.
Yeah, I ran into this exact issue last year when I swapped out old vinyl flooring for tile. My accountant said it counted because it was a permanent upgrade and boosted the home's value, but he also mentioned it's kind of a gray area.
"the line between what's substantial and what's cosmetic can get blurry..."
Exactly this. Seems like it depends a lot on how your accountant interprets IRS guidelines...which isn't exactly reassuring, lol.
I ran into something similar a couple years back when we redid our kitchen cabinets. My accountant was pretty firm that it counted as a substantial improvement because it directly increased the home's value and wasn't just cosmetic. But honestly, the IRS guidelines are notoriously vague on this stuff, and accountants seem to interpret them differently depending on their experience or even their risk tolerance.
I think part of the confusion comes from the IRS wording itself—terms like "substantial improvement" or "permanent upgrade" aren't exactly crystal clear. I've heard of people getting conflicting advice even from different accountants at the same firm. It's frustrating because you'd think something as common as flooring or cabinetry upgrades would have clearer guidelines by now.
In my experience, it's always best to document everything thoroughly—receipts, before-and-after photos, contractor statements—just in case you ever need to justify your deductions down the line. Better safe than sorry, especially when dealing with taxes...
I get the logic behind documenting everything, but honestly, I've found that even meticulous records don't always save you from IRS ambiguity. When we refinanced and redid our bathrooms, our accountant initially said it was a slam dunk "substantial improvement," but later backtracked after chatting with a colleague. Sometimes it feels like accountants are just flipping coins behind closed doors... Maybe the IRS keeps it vague on purpose to keep us all guessing?
Went through something similar when we added a deck and replaced windows. Accountant said it qualified, then paused, scratched his head, and said he'd double-check. IRS rules seem intentionally fuzzy...makes you wonder if clarity's ever the goal.
