Are renovations classified as capital expenditures according to IRS guidelines?
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Yes, renovations can be classified as capital expenditures by IRS guidelines. When you improve, enhance, or restore a property, these costs increase its value or extend its useful life, which typically qualifies them as capital expenses. However, minor repairs may be deductible as regular expenses. Always consult with a tax professional to ensure compliance with current regulations and to maximize your tax benefits from home renovation projects.