Many people ask “is replacing a fence tax deductible?” For tax purposes, it matters what type of work you’re doing to your fence. The IRS differentiates between a repair and an improvement (or new fence). If you purchase a home with an existing fence in disrepair, you can’t add the cost of fixing the fence to your tax basis. In this case, repairing it is considered regular maintenance of the home.
When it comes to repairing fence damage from the wind or one that had significant rotting, repairing these instances is not considered an improvement. However, if you replace an existing fence with a new fence that is different, this constitutes an improvement. You may need a full replacement due to damage or due to use case (for example, if you need to build your fence to a new fence height for privacy.)
