We live in the desert in AZ & for energy efficiency & due to the extreme heat in the summer, we installed a small artifical lawn instead of real grass. Even though it's fairly small, it was a big expense. It should pay for itself in the long run, by saving in watering expenses & not having to buy a mower & other lawn maintenance expenses. Does this qualify as a energy-efficient home improvement tax deduction or any other type of tax deduction? I cannot find any information on this online. Thanks.
Good question. I am pretty sure energy efficient mean improvements that either produce or use less electricty. I do not believe you can deduct the cost of the lawn.
Home improvements are added to your basis in the property and then reduce the gain on the sale when you sell the home.
You might try www.irs.gov to see if you can find the answer. You can call the IRS at (800) 829-1040. (Long wait on hold this time of year) Or, you can write to the IRS and ask your question. Writing is what I would do.
If you have not received an answer by the time you file your return. File with out deducting the lawn. If the IRS writes back and says you can deduct the lawn then file Form 1040X.