I purchased a house Jan 2018 remolded it and decided to keep it for my family as of Aug 2018, can I claim Section 179 deduction or just MACRS depreciation for 27.5 yrs?

[qbteachmt · Accepted solution]

Personal residence = none of what you asked will apply.

[taxes1]

Thank you I really appreciate it - The house was $345k and I put $205k of upgrade and so I’m not allowed any tax deductions - wow that’s disheartening.

[abctax55]

Why *should* the citizenship subsidize your ownership of a home ? - other than the ones that all ready exist (mortgage interest & property taxes)

[itonewbie]

Back to the basic.  All income from whatever source derived is includible as gross income unless specifically exempt or excluded.  Deductions and credits, on the other hand, are matters of legislative grace.  This is especially true for non-business-related expenses.  Capital improvements could still count as basis.  There's no loss here and it should be no surprise.

[George4Tacks]

Keep track of all your costs to determine the basis when you need to use this publication https://www.irs.gov/publications/p523

[taxes1]

Thanks George

[qbteachmt]

It's not Disheartening. It's right there, in your Improvements. This is part of Asset Basis, now. Didn't it Improve that property? That isn't a Write Off; it's an Investment.

[George4Tacks]

"That isn't a Write Off: it's a" HOME