Is AC Repair Tax Deductible?

AC repair in Los Angeles can cost hundreds to thousands of dollars, depending on the severity of the damage. That’s why many of our clients in LA are wondering whether they can deduct the repair expenses from their taxes.

Can You Claim AC Repair on Taxes?

Unfortunately, AC repair is a form of home improvement, which isn’t considered tax-deductible by the IRS. But new AC installation may increase your home’s basis, which is the value of your home for your tax purposes. Home’s basis starts with the money you paid initially for purchasing the house and it’s adjusted over time through valuable reductions and increases.

Home improvement is one of the ways to increase your home basis. Anything that can add value to your home’s worth. A new AC system, for instance, can add value to your home. Thus, it increases its basis, which can decrease the amount you need to pay for certain taxes.

Doesn’t AC Repair in Los Angeles Add Value to the Home?

The repair cost can’t be added to the basis. It means that repairing your gutter, painting a room, or replacing your windows won’t be added to your basis. Previously, homeowners saved receipts for expenses that could qualify as an improvement. Every dollar spent can be added to the basis, thereby, reducing how much IRS could tax if the house was sold. However, home-sale profits are already tax-free. Thus, tracking your basis might not pay off.

Why Bother Repairing Your AC If It’s Not Tax-Deductible?

An air conditioning system can give you a comfortable indoor temperature. For one, it reduces high humidity. With AC, your home is less damp, thereby, keeping you healthy. High humidity is bad for your health because it encourages the growth of dust mites and mold. It also causes heatstroke and dehydration.

Another benefit of having an AC at home is that it reduces asthma attacks. If you or one of your family members suffers from asthma, your air conditioning system can reduce the chances of asthma because it filters dirty air. However, you must change your air filters. If you don’t, pollutants and allergens will just accumulate in the air filter and are recirculated into your home. Make sure to change your air filters every 30 days, depending on what’s written in the user’s manual.

Does AC Repair Improve Air Quality?

Having air conditioning at home can improve indoor air quality. However, if it’s malfunctioning, it can’t provide proper ventilation. Once AC repair is properly done, your AC will start to improve your house’s ventilation while controlling the temperature of your house. But don’t wait until you experience signs of AC breakdown to call our AC specialists. AC repair can be expensive, depending on how severe the issue is. However, you can protect yourself from exorbitant AC repair expenses by choosing to maintain your AC regularly. If it has been a long time since your AC has undergone professional maintenance, then be ready to pay for the cost of AC repair in Los Angeles. But to avoid any major AC repair, call us today so we can schedule maintenance to your air conditioning system: (818) 722-8634.