Renovations are common among homeowners, who choose to improve their properties for a variety of reasons. They may want to sell their property or make the most of the space in their home. However, many people fail to consider the costs associated with their plans. When choosing luxury materials, the costs can add up quickly. In addition, it can be difficult to know whether a contractor is trustworthy and experienced.
Thankfully, some home improvements can be deductible for tax purposes. According to the IRS’ TaxSlayer, improvements that increase a home’s value are tax-deductible. Examples include a new roof, siding, driveway, and insulation in the attic. Even built-in appliances can qualify as improvements. Most of these improvements can be deductible for tax purposes, but some improvements are only tax-deductible in the year the home is sold.
Although home improvement spending is expected to remain flat over the next several years, it is likely to rise in 2021. More homeowners will hire a professional, especially if the project is more complex. According to the survey, 56 percent of respondents intend to hire a professional for part or all of their projects in 2021. In addition, a majority of respondents surveyed said they were planning to spend more time on home improvement projects in 2021.
In addition to new cabinets, countertops, and tiles, home buyers are also considering external renovations. A sunroom, front porch, or detached garage are all examples of external renovations that can add to the appeal of a home. Some homeowners opt for swimming pools as well.