TaxSlayer – Tax-Defining Home Improvement Ideas

Home improvement

Home improvement can mean a wide range of projects that improve your home’s comfort, appearance, or utility. It may also increase its resale value. A home is a significant investment, and you want to ensure that any improvements are worthwhile. Unfortunately, some home renovations do not provide the desired return on investment, and others could even cost you money in the long run. Learn how to plan and execute a home improvement project that will boost your home’s resale value and make it more enjoyable for you and future homeowners.

According to TaxSlayer, home improvements are “construction, repair, replacement, remodeling, alteration, conversion, rehabilitation, modernization, or improvement of a dwelling or to its lot or land.” These improvements can include gardening, landscaping, fence construction, swimming pools, decks, porches, garages, fallout shelters, and other structures attached to a residential property. Home improvement projects for resale can be tax deductible, but it’s important to keep receipts and documentation of labor costs. In New York, for example, contractors are required to pay sales tax on materials unless they have proof that a particular project is considered a capital improvement.

Rock-bottom interest rates are making home improvements more attractive to many consumers. However, high-dollar renovations aren’t practical for every homeowner. Instead, experts say 2023 will be a year of DIY home improvement projects that don’t break the bank. For example, installing crown molding is relatively inexpensive and easy to do yourself. It will add a touch of class to any room.