Home improvement is a term that can mean many things, depending on the scope of your project. You might consider remodeling your home or renovating the interior of your house. Whether you want to change the look of your home or improve the value of the property, there are many ways to make it more appealing to potential buyers. But, before you embark on this project, be sure to know the steps of home improvement first. Listed below are some tips to help you make a smart decision.
Tax-deductible home improvement deductions
The IRS offers several types of tax-deductible home improvements. Among them are energy-efficient upgrades and renovations, which can generate tax credits for the homeowner. In addition to accelerated depreciation, you can also take advantage of a modified accelerated cost recovery system for certain types of improvements. Your local tax professional can explain how accelerated depreciation works, and whether or not you can take advantage of it.
While many people make these improvements primarily to improve the resale value of their property, they may also be deductible. Permanent improvements are ones that are permanent, so they will not depreciate, but will be reflected in the cost of the property when the owner sells the property. These include adding a swimming pool, installing a home security system, landscaping the front yard, installing a new HVAC system, adding an extra water tank, and even a new septic tank. A tax-deductible home improvement loan can be taken out for a project of this nature, and the cost can be fully offset against the taxes.
Choosing a contractor
Before choosing a contractor, make sure that you do some research and ask for references. References can fill in any gaps and answer any questions you may have. Some questions to ask references include if the contractor delivered on time and on budget, and whether they were respectful of their customers and former clients. Read through the references and decide which contractor would be a good fit for your needs. After obtaining references, make an appointment with each one of the three or four you are considering to start the project.
When choosing a contractor, make sure that he has experience in the work that you require. Ask to see examples of his or her work and if he or she has any references, check their credentials. A quality contractor should also be willing to provide information about himself or herself, including insurance and licenses. Lastly, make sure that the contractor offers a thorough description of the work to be done. Include the timeline and schedule, and request permits. Also, look for a contract that clearly outlines the process if disagreements arise during the project. Also, make sure to include a termination clause in the contract.