Are Home Repairs Tax Deductible?

Home office repairs

If you have a qualifying home office and make repairs to that room, the repair cost is deductible:

• Repairs to the office only: Painting your office, fixing the office window, new flooring in the office → 100% deductible
• Whole-home repairs: Fixing the furnace, replacing the roof, pest control → deduct your home office percentage (e.g., 10% if your office is 10% of the home)

Rental property repairs

If you own rental property, repairs are fully deductible as a business expense in the year they're made. This includes:

• Fixing a leaky faucet
• Patching drywall
• Replacing a broken appliance
• Painting between tenants
• Unclogging drains

Important: Repairs (maintaining current condition) are different from improvements (adding value). Repairs are deducted immediately. Improvements must be depreciated over time.

Repairs vs. improvements

The IRS distinguishes between repairs and improvements:

• Repair: Fixes something broken, maintains existing condition → deduct now
• Improvement: Adds value, extends life, or adapts to new use → depreciate

Fixing a broken window: repair. Replacing all windows with energy-efficient ones: improvement. Patching a roof leak: repair. Replacing the entire roof: improvement.