Is a Kitchen Remodel Tax Deductible?


For many, the whole ordeal of filing taxes is complex and mind-numbing, and so it goes with deciding which home improvement projects are tax deductible. In the most basic sense, home upgrades usually are tax-deductible, whereas home repairs usually are not. This is because a home upgrade adds value to a home, whereas repairing something that is broken merely maintains the home’s current value.

Is a Kitchen Remodel Tax Deductible

No Hardwood Floors Were Harmed in the Making of this Hypothetical Scenario

Let’s say your dishwasher goes berserk and floods your kitchen, damaging the beautiful hardwood floors that you love so much. You definitely want to repair and restore them, not only because you love them, but because they are so eye-catching that if you ever put your home on the market, you know they’ll be a major selling point.

Your contractor tells you that in order to properly repair and replace these wooden floors, they’ll have to temporarily remove your under-the-counter cabinets. This is fine by you because you never really cared much for those cabinets anyway. In fact, you’re going to take this opportunity to have new cabinets built! And, while you’re at it, isn’t the home store also having a great sale on soapstone countertops? And, just to make sure that rickety old dishwasher doesn’t act up again and damage your shiny new hardwood floors, you might as well have a new one installed.

In this scenario, what began as a repair project grew into an upgrade project. While the new countertops, cabinetry, and dishwasher are upgrades and would be tax deductible, the flooring project was a repair that was needed to prevent your home from losing the value that it already had, so this portion of the larger kitchen remodeling project would not be tax deductible. Simply subtract this portion of the overall cost, and the remaining amount is what you would deduct on your taxes.

Partner with Frey Construction for Reliable Service

Since 1995, the home improvement experts at Frey Construction have been serving homeowners throughout Madison, Wisconsin, and surrounding areas. As a full-service home contractor, we are qualified to complete a wide range of repairs and remodels, such as kitchen, bedroom, and bathroom renovations, basement finishing, and exterior projects such as siding, roofing, windows, doors, and more. To learn more about the products and services that we offer, our comprehensive warranty protection, or what has kept our customers coming back to us time and again over the last 24 years, contact us today.