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For the home equity loan deduction, would installing a speaker system throughout a home be a substantial improvement? Thoughts?

me-carney
Level 3
 
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IRonMaN
Level 15

That sounds kinda like saying the installation of an 8 track player was a substantial improvement in a 1975 Vega.  On second thought, that's a bad analogy - the 8 track player was a big improvement in the Vega.  But I'm still going to go with "no" on the speaker system.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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IRonMaN
Level 15

That sounds kinda like saying the installation of an 8 track player was a substantial improvement in a 1975 Vega.  On second thought, that's a bad analogy - the 8 track player was a big improvement in the Vega.  But I'm still going to go with "no" on the speaker system.

ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)

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Just-Lisa-Now-
Level 15
Level 15
Even if its wired into the house with speakers installed in the walls, ceilings?  (I saw them do this with a fancy house on one of those home remodeling shows!)

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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IRonMaN
Level 15
I don't know how fancy the house is that we are talking about or whether the speakers are on shelves or in the wall, but I still would vote no.  The speakers might be an "improvement" but they don't sound like they have risen to that "substantial" level to me.
ACME Taxes, Tatoos, Tires and Turtles (I've expanded my line of products to better serve you)
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TaxGuyBill
Level 15
If it would add to the Basis of the property it would be a "Substantial Improvement".  Or another way to look at it, if it was a rental property, would it be depreciated over 27.5 years?
https://www.irs.gov/publications/p936#en_US_2018_publink1000230004

Based on that, I would lean towards that a built-in system may qualify.  I would view it as comparable to light fixtures or a security system, which are §1250 property
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abctax55
Level 15
I have a client who installs high end Dolby "systems" in multi-million dollar homes.  Meaning very "substantial" in total dollars; maybe not as a percentage of FMV of home.  
I can't say I've run across using a HELOC to pay for it & deducting the interest; but the whole idea feels wrong (which is a great technical position to take when preparing a return :smiling_imp:
Former Chump..umm... AllStar...This message was typed from 6 feet away so you can safely read it immediately.

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