Home improvement is a wide range of projects that enhance the value, function or beauty of your house. These projects can include remodeling or adding to a living space, kitchen or bath, repairing damage, improving energy efficiency, rewiring electrical systems and installing new roofs or windows.
It is important to choose wisely and plan carefully when making home improvements. It is also vital to understand how much different projects cost, how they affect resale values and what smart choices can help you save money. Our tools can help you compare the costs and benefits of popular projects and contractors.
Painting, re-grouting tile and power washing your house can be simple, low-cost do-it-yourself home improvement projects that can add significant value to your property. Other high-return projects, like adding a master suite or finishing a basement, are usually more expensive and require the services of a professional contractor. Regardless of the type of project you choose, it is essential to shop around for a contractor and get referrals from friends or real estate agents.
In general, home improvement projects are tax deductible under the Internal Revenue Code if they are completed for the purpose of maintaining or enhancing the property. However, be sure to consult a tax expert as each state’s laws on home improvements are different. For example, in some states, home improvement work that is performed for the purpose of resale is considered “taxable service” and may be subject to sales tax.