Can You Write Off Home Repairs on Taxes? 2025 Guide

You can write off home repairs on your taxes if they are related to a home office or rental property. For personal residences, repairs are not deductible. However, improvements that increase property value, prolong its useful life, or adapt it to new uses may qualify for deductions or credits, especially energy-efficient upgrades. To maximize tax benefits, maintain detailed records of all expenses and consult tax software or a professional for guidance. Understanding the distinction between repairs and improvements is crucial for accurate tax filing and potential savings.

If you're like most homeowners, you probably hate having to pay for things like broken windows, frayed wires, and faulty plumbing. It's only natural, then, that you'd want to know if these expenses are tax-deductible.

Unfortunately, if your home serves purely as a personal residence, then you can not deduct your home repairs. The IRS allows you to write off your home repair costs only if you rent out part of your home or if you qualify for the home office tax deduction.

Note: If you want to track all your tax-deductible home office expenses, try Bonsai Tax. Our app could scan your bank/credit card statements to uncover potential tax deductions. In fact, users typically save $5,600 from their tax bill. Try a 7-day free trial here.

What home improvements are tax deductible versus home repairs?

Before you start any renovations on your house or rental property, make sure you're aware of the distinction between a home improvement and a home repair -- the difference will be crucial come tax time.

Home Repairs

Repairs bring your home back to its original state. For example, replacing a doorknob in order to fix a faulty lock would be considered a repair.

Repairs are needed maintenance to keep your property habitable and operational. To the IRS, repairs don't add "significant value" to your property and don't prolong its life.

Generally, when you repair your home, you help return it to its previous good condition -- therefore, your newly-repaired home can not be considered improved upon.

Also, note that when you replace a broken appliance, the IRS considers this a repair rather than a replacement.

That said, home repairs can include:

• Fixing broken windows
• Repairing frayed wires
• Fixing faulty plumbing

• Repainting a wall
• Repairing a roof
• Replacing a window
• Fixing a broken drain pipe
• Replacing a doorknob or lockset
• Repairing plumbing

Home Improvements

In contrast, home improvements add value to your property and prolong the useful life of your home. Installing a new water heater, for example, would be considered an improvement.

Generally, when you improve your home, you help increase its resale value, and you can deduct the costs of these improvements. There's a catch, though. You can only claim these tax deductions the year you sell your home, as of the 2024 tax year.

Home Improvements Tax Deductible Expenses

Here are some examples of tax-deductible home improvements:

• Adding an extra bedroom to your house
• Converting a garage into a family room or playroom
• Putting up a fence around your backyard or pool
• Adding central heating and air conditioning systems to a previously-unconditioned home
• Installing solar panels
• Installing energy-efficient equipment to get a tax credit

You can track these expenses using our home office expense worksheet.

Now that you understand the difference between a capital improvement and a home repair, you can only claim home repair tax deductions if you:

• Rent out part of your home
• Qualify for the home office tax deduction

• Qualify for the home-office deduction
• Rent out part of your home

When can you claim the home office deduction?

The home office deduction allows homeowners to get reimbursed for their home office and reduce their taxable income by deducting expenses related to the part of the house they use exclusively for business. These expenses can include:

• Mortgage interest
• Property taxes
• Insurance premiums
• Repairs

The tax deduction is available to both homeowners and renters, and it may be claimed for any home in which you reside: a single-family house, an apartment, a condo, or a houseboat. It can't be used for a hotel or other short-term accommodation.

To claim the deduction, you need to either be self-employed, a gig worker, a freelancer, or an independent contractor. Unfortunately, the deduction isn't available for workers who receive W-2s from their employers every tax season. Even W-2 employees who work from home aren't eligible for this deduction. Make sure you qualify because you don't want to risk a home office audit.

That said, to qualify for the home office deduction, your home must meet certain requirements, which include:

The “exclusive and regular use” requirement

This requirement states that the home office must be used solely for business purposes. If part of your home office is also used as a residence, even occasionally, you can't claim this deduction.

For instance, let's say you set aside one room in your home for your freelance writing business. If you allow your children to use the room to complete their school assignments, then you likely won't qualify for the home office deduction.

The “principal place of business” requirement

The principal place of business requirement states that your home office has to be the place where you engage in your business activities regularly and full-time. This is where you manage your business, meet clients and customers, deal with finances, conduct research, or perform other business duties.

You can't claim a home office deduction if your home office is merely a place where you keep books and records.

With that said, if you make any repairs exclusively to your home office -- rather than your entire home -- you can write off 100% of the cost you incurred. For instance, let's say you use one of your rooms as a home office. You have a broken window and you need it replaced. The money you'll use to replace this window is 100% deductible when you file your returns.

In contrast, any repairs to your entire home aren't 100% deductible -- the percentage of costs you'll deduct depends on the percentage of home-office use. Let's say you use 30% of your home for business purposes. If you decide to repaint your entire home, then you'll deduct only 30% of the costs you incurred.

Home improvements are tax deductible as well. Similar to home repairs, home improvements must be made only on the parts of your home that you use for business.

The difference, however, is that you need to deduct home improvements over time with depreciation. The IRS allows you to deduct home repairs within the year they're made, as they consider repairs necessary for the upkeep of your business. Home improvements, on the other hand, are considered capital improvements as they add value to your home over time, so you may have to depreciate the expenses you incur over a period of years.

For instance, let's say you incur a $1,000 roofing expense this year. If you classify this $1,000 as a home repair, you can deduct the $1,000 this tax season. If you classify it as a home improvement, you may have to depreciate it over a period of 27.5 years, and you might only claim a $35 write-off this year. But on the bright side, you may earn a tax break when you eventually sell the home.

Read more on limitations for the home office deduction here.

Home office tax deductions and qualifying criteria

How to qualify for the home office deduction in 2025

To qualify for the home office deduction in 2025, you must use part of your home exclusively and regularly for business. This means a specific room or clearly defined area must serve as your principal place of business or a place where you meet clients or customers. The IRS requires that the space is not used for personal activities during the tax year.

For example, if you run a freelance graphic design business and use a dedicated room with your computer and supplies solely for work, you meet the criteria. However, using your kitchen table occasionally for work does not qualify. The space must be your main business location or where you conduct administrative tasks regularly.

Keep detailed records such as photos of your workspace and a log of business activities to support your claim. Meeting these criteria ensures you can confidently claim the deduction without risking an audit. Use IRS Form 8829 to calculate your deduction if you are self-employed.

Calculating the home office deduction for 2025

The home office deduction for 2025 can be calculated using either the simplified or regular method. The simplified method allows a deduction of $5 per square foot of your home office, up to 300 square feet, capping the deduction at $1,500. This option is easier and requires less recordkeeping.

The regular method involves calculating the actual expenses related to your home office, such as mortgage interest, rent, utilities, insurance, and repairs. You then multiply these expenses by the percentage of your home used for business. For example, if your office is 200 square feet in a 2,000-square-foot home, you can deduct 10% of those expenses.

Choosing the right method depends on your expenses and recordkeeping preferences. Many freelancers use tax software like TurboTax or H&R Block, which guide you through both methods and suggest the best option based on your inputs. Keep all receipts and documents to substantiate your deduction.

Common mistakes to avoid when claiming the home office deduction

One common mistake is claiming a home office deduction for a space that isn’t used exclusively for business. Sharing your office with family or using it for personal activities disqualifies the deduction. Ensure your workspace is strictly for business to avoid IRS penalties.

Another error is neglecting to keep accurate records of your home expenses and the square footage of your office. Without proper documentation, your deduction claim may be denied. Use apps like CamScanner to save receipts and measure your office space precisely with a tape measure or smartphone tool.

Finally, some taxpayers incorrectly claim the deduction when they are employees rather than self-employed. The home office deduction generally applies only to self-employed individuals or independent contractors. If you are an employee working from home, check if your state allows any deductions, as federal rules are stricter.

What tax deductions apply if you rent out part of your home?

If you rent out one of the rooms in your home, the IRS requires you to report this income and allows you to deduct expenses related to the rented room only. The tax rules you have to follow are similar to the ones landlords have to adhere to when they rent out entire properties.

When renting out part of your home, you need to divide certain expenses between the portion of the property that is used for business and the portion of the property that is used for personal reasons, as though you had two separate properties.

If you use the money exclusively on the rental part of your home, you don't have to divide the expenses—you can deduct the entire amount. For example, if you're renting out a spare room for $1,000 per month and pay $500 per month in tax-deductible costs such as mortgage interest or repairs, you can deduct the entire $500 from your rental income.

If you used any money for repairs that benefit the entire property — such as a new roof or plumbing repairs — you must divide these expenses between the business and personal portions of your home. For example, if 5% of your home was used for business purposes throughout the year and you incurred $1,000 in tax-deductible costs related to the entire property, you can deduct only $50 of those expenses from your tax bill.

Rental property repairs and improvements

Understanding the difference between repairs and improvements

Repairs and improvements to rental properties are treated differently for tax purposes in 2025. Repairs are costs that keep your property in good condition without adding significant value or extending its life. Improvements, on the other hand, increase the property's value or prolong its useful life and must be capitalized and depreciated over time.

For example, fixing a leaking faucet or patching a hole in the wall counts as a repair and can be deducted fully in the year the expense is incurred. Replacing an entire roof or installing a new HVAC system is considered an improvement and must be depreciated over several years, typically 27.5 years for residential rental property.

Knowing this distinction helps you maximize your deductions. Track expenses carefully and categorize them correctly to avoid IRS issues. Use accounting software like QuickBooks or specialized rental property tools such as Stessa to simplify this process and keep your records accurate.

Which rental property repairs are tax deductible in 2025

Most repairs made to maintain your rental property are fully deductible in 2025. This includes:

• Fixing broken windows
• Repairing plumbing leaks
• Repainting walls
• Servicing heating or cooling systems

These expenses are considered ordinary and necessary to keep the property rentable.

For instance, if you spend $500 to replace a broken water heater valve or $1,200 to repair a damaged fence, you can deduct these costs entirely on your Schedule E for rental income. Keep all receipts and document the work done to support your deductions in case of an audit.

To stay organized, consider using apps like Expensify or Shoeboxed to capture and categorize repair expenses immediately. Promptly deducting these costs reduces your taxable rental income, improving your cash flow for future property needs.

How to handle improvements for rental properties on your 2025 taxes

Improvements to rental properties cannot be deducted in full the year you pay for them. Instead, the IRS requires you to capitalize these expenses and recover the cost over time through depreciation. Residential rental property improvements are depreciated over 27.5 years using the Modified Accelerated Cost Recovery System (MACRS).

Examples of improvements include:

• Adding a new deck
• Remodeling a kitchen
• Upgrading electrical wiring

If you spend $15,000 on a kitchen remodel, you cannot deduct it all at once but can claim approximately $545 per year as depreciation ($15,000 ÷ 27.5 years).

To maximize tax benefits, keep detailed records of all improvement costs and consult tax software like TurboTax Premier or a CPA familiar with rental property tax rules. Additionally, the IRS allows for a Section 179 deduction on some property improvements, but this is limited and rarely applies to residential rentals, so professional advice is recommended.

Special considerations for 2025 rental property tax deductions

In 2025, the IRS continues to allow landlords to deduct expenses related to rental properties, but some rules have tightened. For example, the IRS scrutinizes distinguishing repairs from improvements more closely, so accurate record-keeping is essential. Additionally, any expenses related to personal use of the property must be prorated and cannot be fully deducted.

State-specific rules may also affect deductions. For example, California requires landlords to follow additional depreciation recapture rules when selling rental properties. Check your state’s tax authority website or consult a local tax professional to understand these nuances.

Finally, consider using tax planning tools like HelloBonsai’s tax organizer or consulting a tax advisor early in the year. This proactive approach ensures you capture all eligible deductions and comply with 2025 tax laws, ultimately reducing your rental property tax burden.

What is the bottom line for home repair tax deductions?

Many home repairs are deductible and offer tax benefits, as long as you meet the conditions explained above. Repair costs for fixing your roof, air conditioner, or plumbing in your kitchen may be deductible at tax time.

Tax implications of home improvements when selling your home

How home improvements affect capital gains tax

Home improvements can reduce the capital gains tax you owe when selling your home. The IRS allows you to add the cost of qualifying improvements to your home's purchase price, which increases your adjusted basis. A higher basis means your taxable gain is lower when you sell.

For example, if you bought your home for $300,000 and spent $50,000 on improvements like a new roof or energy-efficient windows, your adjusted basis becomes $350,000. If you sell the home for $450,000, your taxable gain is $100,000 instead of $150,000. This can save you thousands in taxes, especially if your gain exceeds the $250,000 exclusion for single filers or $500,000 for married couples filing jointly.

To maximize this benefit, keep detailed records and receipts of all home improvements made in 2024 and 2025. Use tools like Evernote or a dedicated folder in cloud storage to organize these documents. When it’s time to sell, provide this information to your tax preparer or use tax software like TurboTax to accurately report your adjusted basis.

Which home improvements qualify for tax deduction or basis adjustment

Not all home improvements qualify for tax benefits. The IRS distinguishes between repairs and improvements: repairs maintain your home’s condition, while improvements add value or prolong its life. Only improvements can increase your home's basis for capital gains tax purposes.

Examples of qualifying improvements include:

• Adding a new bathroom
• Installing central air conditioning
• Replacing the roof
• Upgrading the electrical system

Cosmetic fixes like painting or fixing leaks typically don’t count. Energy-efficient upgrades such as solar panels may also qualify for federal tax credits, which directly reduce your tax bill in 2024 and 2025.

To ensure your improvements qualify, consult IRS Publication 523 or speak with a tax advisor. Keeping detailed invoices and contractor contracts will help prove the nature of the work if audited. This preparation is especially important for freelancers and small business owners who may use part of their home for business purposes and want to maximize deductions.

How to report home improvements and sale on your tax return

When selling your home, report the sale and home improvements on IRS Form 8949 and Schedule D to calculate capital gains. Include the total cost of improvements as part of your home's adjusted basis. This reduces the taxable gain reported on your tax return.

If you claimed any home office deductions or depreciation, you must account for depreciation recapture, which can increase your taxable gain. For example, if you deducted $10,000 in depreciation, that amount is added back to your gain and taxed at a higher rate. Use tax software like H&R Block or consult a CPA to handle these calculations accurately.

To avoid surprises, start tracking improvements early and maintain organized records throughout the year. When preparing your 2025 tax return, gather all receipts and documents related to home improvements and sales. This proactive approach helps you stay compliant and minimize your tax liability when selling your home.

medically necessary home improvements

which home improvements qualify as medically necessary in 2025

Home improvements that are medically necessary can be tax deductible if they are made primarily for medical care. The IRS allows deductions for modifications that enable a person with a disability or medical condition to live safely and comfortably. Examples include installing ramps, widening doorways for wheelchair access, or adding handrails in bathrooms.

To qualify, the improvement must be directly related to medical care prescribed by a doctor. Cosmetic changes or general home upgrades do not qualify. For instance, if your doctor recommends a stairlift due to mobility issues, the cost of installing it can be deducted. However, if you add a new bathroom for convenience, that expense is not deductible.

Keep detailed records including your doctor’s prescription or recommendation, receipts, and invoices for the work done. This documentation is essential if the IRS requests proof that the improvement was medically necessary. Using tax software like TurboTax or consulting a tax professional can help ensure you correctly claim these deductions in 2025.

how to calculate the deductible amount for medical home improvements

The deductible amount for medically necessary home improvements is generally limited to the portion of the cost that exceeds any increase in your home's value. You can only deduct the expenses related to medical care, not the entire project if it also improves your property's market value.

For example, if you spend $15,000 installing a wheelchair ramp and your home's value increases by $3,000 as a result, you can deduct $12,000 as a medical expense. You must also itemize deductions on Schedule A of your 2025 tax return filed in 2026 and only the total medical expenses exceeding 7.5% of your adjusted gross income (AGI) are deductible.

To maximize your deduction, track all related expenses including materials, labor, and permits. Using tools like the IRS Home Improvement Worksheet or consulting with a CPA can provide clarity on how to calculate the deductible portion accurately for your 2025 taxes.

state-specific considerations for medically necessary home improvements

Some states offer additional tax credits or deductions for medically necessary home improvements beyond federal rules. For example, California allows certain home modification expenses to be claimed as a nonrefundable credit on your state tax return. Meanwhile, states like New York may have specific programs to assist with funding these improvements.

It’s important to check your state’s tax department website or consult a local tax advisor to understand any extra benefits or requirements. In some states, you may need to submit additional documentation or apply for specific credits separately from your federal return.

Taking advantage of both federal and state tax benefits can significantly reduce your out-of-pocket costs for medically necessary home improvements. Staying informed about your state’s 2025 tax laws will help you plan and claim all eligible deductions effectively.

Energy-efficient home improvement credits

Understanding the energy-efficient home improvement credit for 2025

The energy-efficient home improvement credit for 2025 allows homeowners to claim a tax credit for certain upgrades that reduce energy consumption. This credit applies to improvements such as:

• Installing high-efficiency windows
• Doors
• Insulation
• HVAC systems

The Inflation Reduction Act expanded these credits, making them more valuable and accessible through 2025.

For example, you can claim 30% of the cost for qualified solar panels or energy-efficient heat pumps, up to a maximum of $1,200 annually for other improvements like insulation or windows. These credits directly reduce your tax bill. If you spend $5,000 on qualifying insulation, you could receive a $1,500 credit on your 2025 taxes.

To take advantage of this credit, keep detailed receipts and product certifications showing energy efficiency standards. Use IRS Form 5695 when filing your 2025 tax return to claim the credit. This form guides you through reporting your expenses and calculating your credit amount accurately.

Which energy-efficient improvements qualify for the credit?

Qualifying improvements for the 2025 energy-efficient home improvement credit include the following upgrades designed to reduce energy use:

• Adding insulation that meets or exceeds the latest energy standards
• Replacing old windows and doors with ENERGY STAR-certified models
• Installing advanced heating and cooling systems like heat pumps or central air conditioners

Solar energy systems, such as solar panels and solar water heaters, also qualify and often have higher credit limits. For instance, solar panel installations can qualify for a 30% credit with no maximum limit, encouraging more significant investments in renewable energy. However, improvements like regular maintenance or repairs do not qualify.

Before starting a project, verify that the products meet the Department of Energy’s energy efficiency requirements. Many manufacturers provide certification labels or documentation, which you should keep for your tax records. This ensures your improvements will be eligible and helps avoid delays during tax filing.

How to maximize your tax benefits from energy-efficient upgrades

To maximize your tax benefits in 2025, plan your home improvements strategically. Combine multiple qualifying upgrades in the same tax year to increase your total credit. For example, pairing new insulation with ENERGY STAR windows and a heat pump can significantly boost your credit amount.

Consider using tax software like TurboTax or consulting a tax professional to ensure you claim all eligible credits correctly. These tools can help you navigate IRS Form 5695 and identify additional savings, such as state-specific incentives that may stack with federal credits.

Finally, track all expenses carefully and ensure improvements are installed by December 31, 2025, to qualify for that tax year. Early planning and documentation can help you optimize your tax return and reduce your overall home energy costs effectively.