Hatrack River Forum: Home improvement tax question

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Posted by Lisa (Member # 8384) on :

So... we put up a garage earlier this year. And we financed it, so we've been paying yet another thing every month.

My question is, is the interest on this loan deductable the way our mortgage interest is? Is the entire cost of the garage deductable as home improvement?

Does anyone know where a good place would be to look stuff like this up?

Posted by Dagonee (Member # 5818) on :

Boon's thread. [Smile]

Here's a link on interest deduction: http://www.irs.gov/publications/p936/ar02.html#d0e2092

Posted by Stephan (Member # 7549) on :

IRS.gov does have a wealth of information. The garage would only be deductible from what I understand if it is used for business purposes. The mortgage interest is almost definitely deductible however. Keep records of the garage payments though, I think the cost is deductible from the taxes paid on the selling price, should you ever sell.

Posted by Mig (Member # 9284) on :

If the loan you reference is another mortgage loan, e.g., an equity loan, a loan secured by the real property, then the interest on that loan and any points you paid is deductable.