Why to keep home improvement receipts

Receipts for a new roof or a kitchen remodel feel like clutter until you sell the house. In the US, the cost of capital improvements generally adds to your home's tax basis, which can reduce the taxable gain when you sell. Repairs and routine maintenance usually don't.

Improvements vs. repairs (general idea)

• Improvements add value, extend the home's life or adapt it to new uses: an addition, a new roof, central air, a remodeled kitchen.
• Repairs keep the home in normal condition: fixing a leak, patching drywall, repainting a room.
• The line isn't always clear; IRS Publication 523 explains it, and a tax professional can help with your situation.

What to keep for each improvement

• The contract or invoice
• Proof of payment
• Permits and inspection sign-offs
• Before and after photos
• A one-line note of what was done and when

How long

Keep improvement records for as long as you own the home, plus at least three years after you file the tax return for the year you sell.

General information, not tax advice. See IRS Publication 523 or ask a tax professional about your situation.