A fresh paint job can do wonders when it comes to improving the appearance of the interior and exterior of a house. But painting a house can be an expensive project, and while it may seem to rank on the same level as replacing windows or installing a new furnace, the Internal Revenue Service takes a different view. House painting is not a capital improvement, and homeowners who paint their houses are not allowed a tax deduction for the expense no matter how much it perks up the appearance of the property.