Capital improvements made to a principal residence are not tax deductible. Instead, they are added to the basis of the home (usually what you paid for it). This increased basis serves to reduce the amount of gain that results when the home is sold. However, certain energy-related improvement may entitle you to a tax credit now.
Real property in which 80% or more of the gross income is from dwelling units. Under MACRS, depreciation is claimed over 27.5 years under the straight-line method.