DorothyS3 (Florida)
Posts: 1
Posts: 1
Posted:
Are the mandated fire sprinklers eligible for income tax deductions?
A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
Mandated Fire Sprinklers
Started by DorothyS3 • 6 replies • 227 views
💬 Join us to post & get advice from 50,000 HOA & Condo leaders.
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in
MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
For who? The HOA or for the individual homeowner? It depends on who paid for them. If it is for you, you can check with the IRS if they are. If it's the HOA that paid/installed them then that probably isn't a deduction. It's more of a capital improvement.
Former HOA President
ElleN (Idaho)
Posts: 4,420
Posts: 4,420
Posted:
Quote:
Posted By DorothyS3 on 02/02/2024 12:43 PM
Are the mandated fire sprinklers eligible for income tax deductions?
Are the mandated fire sprinklers eligible for income tax deductions?
If this is a private residence not being rented out, the only tax implications I see are when you sell the home. The seller can add capital improvement expenses to the cost basis of the home, thereby reducing the capital gain. If the capital gain is less than the exclusion limit ($250k for single, $500k for married), then the seller pays no taxes on the capital gain.
There are other caveats, but this is a start.
DouglasK1 (Florida)
Posts: 2,046
Posts: 2,046
Posted:
Quote:
Posted By ElleN on 02/02/2024 2:41 PM
You are better off asking this in a tax forum or financial planning forum.
If this is a private residence not being rented out, the only tax implications I see are when you sell the home. The seller can add capital improvement expenses to the cost basis of the home, thereby reducing the capital gain. If the capital gain is less than the exclusion limit ($250k for single, $500k for married), then the seller pays no taxes on the capital gain.
There are other caveats, but this is a start.
You are better off asking this in a tax forum or financial planning forum.
If this is a private residence not being rented out, the only tax implications I see are when you sell the home. The seller can add capital improvement expenses to the cost basis of the home, thereby reducing the capital gain. If the capital gain is less than the exclusion limit ($250k for single, $500k for married), then the seller pays no taxes on the capital gain.
There are other caveats, but this is a start.
Agree with this, and personally am not aware that there is any differentiation between mandated or optional expenses.
Escaped former treasurer and director of a self managed association.
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
You need to talk to a tax professional. Some home improvements are tax deductible.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Quote:
Posted By DorothyS3 on 02/02/2024 12:43 PM
Are the mandated fire sprinklers eligible for income tax deductions?
Are the mandated fire sprinklers eligible for income tax deductions?
Is maintaining locks on your doors, smoke detectors, and carbon monoxide detectors tax deductible?
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
Dean,
I get the impression that the OP is discussing a new install vs. maintenance.
see: Florida Requires High-Rises to Retrofit Sprinkler Systems By 2024
In regard to the initial question - tax deduction:
Providing the Association is using tax form 1120 and not 1120-H, I believe it would be tax deductible.
I do not know if an individual could claim the deduction - something they will need to ask a CPA.
See: Fire Sprinkler Tax Incentives
Is a fire sprinkler system qualified improvement property?
I get the impression that the OP is discussing a new install vs. maintenance.
see: Florida Requires High-Rises to Retrofit Sprinkler Systems By 2024
In regard to the initial question - tax deduction:
Providing the Association is using tax form 1120 and not 1120-H, I believe it would be tax deductible.
I do not know if an individual could claim the deduction - something they will need to ask a CPA.
See: Fire Sprinkler Tax Incentives
Is a fire sprinkler system qualified improvement property?
🎯 You've read this entire discussion
Join the conversation with 50,000 HOA & Condo Leaders:
- ✓ Ask follow-up questions
- ✓ Share your experience
- ✓ Get expert advice
- ✓ Access 350,000 discussions
Create Free Account →
⚡ Takes 30 seconds
Already a member? Log in here