Home improvement is the process of improving the quality or appearance of a home. This can include repairs, new installations, improvements to the exterior, and even making additions or changes to the interior of the house.
The Harvard Joint Center for Housing Studies predicts that home remodeling will hit its high point this year. Moreover, inflation is taking a toll on the market, reducing the return on investment of many upgrades. However, a well-planned budget can help prevent renovations from blowing out of control.
According to a recent study, the average American household spent a record-setting amount on home improvements last year. This included an increase of 238% in hiring landscapers, and a 275% jump in deck construction. Furthermore, the number of people putting up fences was up 144% from March to July.
The most important thing to know about home improvement is that it can be tax deductible. There are several types of improvements that qualify, including those that improve the resale value of your home. A new roof, siding, and a new driveway are a few of the items that will qualify. But, you also want to keep in mind that some of these upgrades are only deductible in the year you sell your home.
If you’re thinking about making a home improvement, it may be a good idea to consult your CPA about the tax implications of your project. They’ll be able to tell you which improvements are most likely to be deductible.
Another great resource is TaxSlayer, a website that lists all of the tax-deductible home improvement projects available in your area. Many of these home improvement projects are only deductible in the year you sell the home, so it’s a good idea to keep track of your receipts.
The best part about home improvement is that it is a great investment in a time of uncertainty. With a few hundred dollars and a bit of planning, a new front door, new flooring, or a fresh coat of paint can really make your home look great. Additionally, it’s a good idea to check with your insurance agent to find out if any coverage is necessary.
In addition to increasing the resale value of your house, it can be a smart move to use the latest technology and energy-efficient appliances to save money on your energy bills. For instance, installing a new solar panel system can qualify for a 30% credit on the purchase and installation of the equipment. Also, the installation of medical equipment can improve the lives of your elderly family members.
Whether you’re doing a simple home renovation or a more comprehensive home improvement project, it’s important to get everything right. You should also make sure you choose a licensed contractor and pay attention to the proper safety measures. After all, your home is the largest piece of property you’ll own and it deserves to be in good shape.
Depending on your specific needs, it’s a good idea to make a list of things that need to be improved before beginning a major project. Then, add details to the project plan.