If i spent 40k on a house reno will my taxes give me back 40k * my tax rate?

funnylike
Posting as :
works at
You are currently posting as works at

Not how taxes work

likefunny

Repair would be netted against rent on schedule E. Reno is capitalized and depreciated at 3.6% deduction annually over 27 years.

likesmart

Is this a rental or primary residence? If a rental, then the 40k is capitalized and recovered through depreciation and when you sell. If primary residence then you can add the $40k to your basis which may or may not make a difference when you sell. At the most you would get back $40k*cap gain rate.

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Rental property

Haha

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