Home improvements are a big investment that can add value to your home. They also can save you money on your tax bill if you decide to sell in the future.

But not all home improvements are eligible for tax deductions, and those that do qualify won’t apply to the year you make renovations.

“Now, while most home improvement efforts won't lower your taxes today, they're not without their future perks,” says real estate agent Clint Jordan, a veteran and former Air Force fireman who founded Mil-Estate Network, a real estate service for veterans and their families. “If you tackle some major renovations that boost your home's value, prolong its life or adapt it for a new purpose, you're essentially making what's known as capital improvements.” Later, when it’s time to sell, these capital improvements can benefit you and your tax situation, Jordan adds.

Make sure you keep track of all these costs, including receipts, purchase orders and other related documentation, for when you decide to sell your home.

Here are some guidelines for exploring home improvement tax deductions:

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Generally, most home improvements, especially cosmetic ones, aren’t tax deductible. However, the IRS does offer some tax benefits for certain capital improvements, such as renovating your home office or a space you rent, making energy-efficient improvements or making changes due to a medical condition.

If you do qualify for tax breaks, you won’t see the benefit immediately. “When you make a home improvement, such as installing central air conditioning or replacing the roof, you can't deduct the cost in the year you spend the money,” says Roxanne Hendrix, CPA and tax expert with JustAnswer. “But, if you keep track of those expenses, they may help you reduce your taxes in the year you sell your house.”

Most home improvements aren’t tax deductible, but the IRS does specify situations in which you can write off expenses as you improve your home. Here are home improvements that could save you money, either as a deduction or a credit, on your tax bill.

Capital improvements. The IRS defines a capital improvement as one that adds value to your home, prolongs its useful life or adapts it to new users. A capital improvement is tax deductible, but only if the improvement exists for more than one year and remains when you sell the home.

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