What is the difference between repairs and improvements?
Updated: 1/21/2013
Article ID: IAS10021
A repair is a cost that maintains the home in good condition but does not add to its value or prolong its life. An improvement adds value to the home, prolongs its useful life or adapts it to new uses. Repairs on a personal residence are not deductible and are not added to the basis of the home. Improvements are added to the basis of the home.