The term Home improvement refers to various home renovation and remodeling projects. Often, these projects are meant to improve an existing home’s interior and exterior. This process can be done in many ways, including adding new features or replacing outdated ones. It can also include improving property value. Here are some projects you may want to consider:
Tax-deductible home improvement expenses
Home improvement projects can be deductible from your taxes, if you follow a few rules. To qualify as a capital improvement, the project must add value to your home, extend its useful life, or adapt it to new uses. For example, adding a room is a tax-deductible expense, as is installing new plumbing. Modernizing your kitchen is another tax-deductible expense. Kemberley Washington advises homeowners to keep records of all home improvement projects, including contractor invoices and bank statements.
Some home improvements are tax deductible if they improve the value of your home, such as adding a new roof or insulating the attic. However, medical improvements are only deductible if they meet specific income requirements. Other home improvements, such as repairs, are not tax-deductible. In order to determine whether they qualify, you should consult the IRS publication 523. For example, a new driveway, insulation in the attic, or built-in appliances are all examples of home improvement expenses.
Do-it-yourself home improvement projects
Some people can complete do-it-yourself home improvement projects, but other people may prefer the help of professionals. If you’re planning to repair plumbing problems in your home, be sure to follow the “measure twice, cut once” rule. Plumbing projects can ruin carpet or hardwood floors, and sewer lines can carry toxic materials. As a rule of thumb, you should hire a professional for these types of projects. Make sure to research the costs of the project before you start. This way, you can budget your finances accordingly.
Many people find do-it-yourself home improvement projects appealing. This is especially true when you consider the fact that a majority of construction workers don’t have any expertise in home maintenance. Many homeowners end up with a job that doesn’t meet their expectations, or even worse, they’ve paid for services that are never completed. This is why it is important to understand the differences between do-it-yourself home improvement projects and those that require professionals.
Financing options for home improvement projects
There are many ways to fund home improvement projects, and each can be cost-effective depending on your financial situation. If you have sufficient equity in your home, you may opt to borrow against that equity instead of using a personal loan. However, personal loans have higher interest rates than other types of loans. For a home improvement project, a home equity loan is probably a better choice. This type of loan is available to homeowners who own substantial amounts of equity in their home.
Home improvement projects can cost tens of thousands of dollars, so you may need to take out a loan to finance the project. When choosing a lender, make sure to review a range of loan options, as each has their own pros and cons. Always remember to talk to a financial advisor before making a major investment, as their advice can be invaluable. You can use the information gathered in this article to decide which loan option is the right one for you.
Tax credit for energy-efficient renovations
If you’re considering making an energy-efficient renovation to your home, you may be eligible for a tax credit for the costs of these upgrades. The Federal government recently extended a tax credit for energy-efficient home renovations, which expires in October 2014. The new legislation lets eligible homeowners claim a 20 percent refundable income tax credit on the cost of certain renovations. The renovations must be done by a qualified contractor and receipts must be presented.
The new program, Ma Prime Renov, is aimed at funding building renovations as part of Europe’s “Renovation wave”. It aims to encourage energy efficiency in private accommodations and leverage the benefits of the EU’s emissions trading scheme. The renovation credit will help homeowners finance renovations – all they need to do is apply for it. Those who qualify may even be able to claim up to EUR 2 billion in tax credits.