Home improvements don’t just make your home look nicer and feel more comfortable, they can also benefit your wallet. That’s because certain improvements associated with maintaining, repairing, and improving your home can be tax deductible.

The IRS allows homeowners to deduct certain costs related to keeping their homes in good condition. You can deduct the cost of repairs, materials, labor, and certain home improvements if they meet the criteria. This can be a great way to reduce your overall tax bill each year.

To be deductible, the improvement must be an ordinary and necessary expense that was completed for the purpose of furthering your business or maintaining your home, such as maintaining a safe environment for your family. Improvements such as new plumbing, electrical wiring, foundation repairs, window replacements, installation of additional insulation, and improvements to heating and cooling systems are among the items that may qualify for tax deductions.

Also, some home improvements that increase the value of your home may be considered capital expenses and are not deductible. These include renovations, additions, or other major improvements that substantially add value to your home.

When you’re filing your taxes, you can deduct the costs of qualifying home improvements from your taxable income.