Home improvement is a major way to increase your home’s value. It can also be a tax-deductible investment. But before you start, there are a few things to consider.
First, you must have the proper paperwork for your project. This can be as simple as completing Form ST-124, Certificate of Capital Improvement. However, if you’re planning a project that will involve significant changes to your home, you should check with a CPA or other expert to ensure you meet all of your legal obligations.
Second, you should research the costs involved. Often, home improvements are expensive. If you’re going to splurge on a large upgrade, you’ll want to make sure it pays for itself over time.
Third, you should take into account the state’s regulations. Some states allow homeowners to deduct only certain upgrades when they sell their home. For example, marble flooring is an attractive upgrade, but it might not be worth it to a potential buyer.
Finally, you need to be careful about contractors. Make sure they have a license and good references. A good contractor should also be insured.
During the past year, consumers have seen a big increase in the number of people doing home remodeling projects. These include fence construction, deck building, and hiring landscapers.
Most consumers plan to do some of these projects on their own, while others will hire a professional. Regardless, you should choose your projects wisely to ensure your home’s resale value increases.