When you sell your home, capital gains tax threatens to snatch a portion of your home sale. If you currently live in a home you plan to sell in the future, there are ways to defer this tax with home upgrades by getting organized with your taxes now.  Essentially, all the remodeling you have ever done on the home becomes a deduction that reduces this tax expense. So, now’s the time to start itemizing.

Kitchen Remodeling

If you have remodeled or are planning to remodel your kitchen, keep a detailed list of the upgrades along with all receipts from contractors and your local home improvement store. Here are some of the big deductibles expenses that you should file for your home sale.

1. New flooring materials and the flooring contractor are deductible
2. New light fixtures and the cost of the electrician
3. New appliances-unless you replaced an appliance that was broken, any new appliances purchased as an upgrade count as a deduction
4. New cabinets and countertops
5. Painting the walls and ceiling and the painters who do the work

Bathroom Remodeling

All upgrades to your bathrooms count as deductions. Make lists of all the expenses from bathroom fixtures, shower doors, flooring and electrical work. Even if you do some of the work yourself, the materials can be counted against capital gains.

Outdoor Beautification

The exterior of the home matters just as much as the inside when it comes to deductions. Be sure to include:

• Re-sodded lawns
• Additions to your landscaping including trees and shrubs
• Design elements such as brickwork or stonework add to the value and thus become a valued deduction
• Driveway repaving or patio work are all considered upgrades

What About Siding and Roofing?

There are debates as to whether siding and roofing count as deductible upgrades. Usually, roofs are replaced because they are damaged, which would be considered more of a repair than a home improvement. Siding falls under the same category. However, it can be argued that a roof can be replaced for aesthetic reasons, the color or type of shingle doesn’t match your taste as a homeowner.

The color or quality of the siding can be argued the same way. Work with your accountant to see if cosmetic upgrades to ether can be considered for a capital gains deduction.

Go to TurboTax for more information on capital gains. Also, use their money-saving coupon during tax time to increase your refund.