Home improvement is an activity that involves enhancing the appearance of your home by changing its design or installing new features. Other terms for home improvement include home remodeling and home renovation. These projects involve upgrading the interior and exterior of your property. In addition, it can also include adding on or renovating an existing room. If you are planning to improve the appearance of your home, you should hire a contractor.
Tax-deductible home improvement projects
There are many home improvement projects that you can take on to improve your home’s value, and some of them are tax-deductible. For instance, you may be eligible to get a tax break if you install solar panels on your roof. Other possible tax-deductible improvements include making your home more accessible and energy-efficient.
Home improvements can increase the value of your home, and they can also increase your cost basis (which is the original purchase price minus depreciation). Whenever you sell your home, you can write off the cost of your renovations, which will also lower your tax bill. For example, installing new stainless steel appliances in your kitchen will increase your home’s resale value.
Requirements for hiring a contractor
Before you hire a contractor for home improvement, you should ask for a written contract. This document should clearly describe the work to be done and the cost of the materials. It should also outline payment schedules. According to state law, a contract must be written for all home improvement projects over $1,000. A contractor who does not follow this rule risks being penalized, suspended from licensing, and even prosecuted. Moreover, a contract should also detail guarantees and warranties on materials and workmanship. Lastly, it should mention the contractor’s full name, address, and phone number.
The next step is to find out the insurance coverage of the contractor. The contractor should have bond insurance. Make sure to check references and check if there are any complaints against them. You can also check with the state consumer protection agency and the Better Business Bureau about the contractor.
Costs of renovating or adding to a home
There are many factors that affect the cost of renovating or adding to a home. One of the biggest factors is the amount of space. Small spaces cost less to renovate, while larger rooms can cost more. For example, a 1,000-square-foot home can cost about $19,000 to remodel, while a 3,000 to 4,000-square-foot home can run up to $75,000 to $100,000. The price per square foot depends on how much work is involved, the quality of materials, and whether structural changes are made. For example, a kitchen renovation can cost as much as $100 to $250 per square foot.
Other expenses to consider include building permits, which can range anywhere from $400 to $1,800. For larger projects, these permits are required, but smaller updates may not require them. If you’re not sure whether or not a permit is needed, check with your local municipality. Remember that newer homes are built to more current building codes, and therefore are more likely to be in better condition. Moreover, homes built in the 1930s may have outdated wiring, while homes built in the 2000s will have modern wiring.