Home improvement is a word that is often used to describe the repairing or upgrading of residential buildings. It includes the installation of new or upgraded fixtures and appliances, such as siding and windows. This work can be done by a licensed contractor.
A home improvement project is a cost-effective way to invest in your property. You can make a one-time payment or spread out the cost over a number of months. The project can also be a way to make your house more comfortable. For instance, you can add a kitchen island to your counter space, which can provide additional food storage.
Home improvements can also increase your property’s value. According to the Harvard Joint Center for Housing Studies, demand for home remodeling is expected to rise in the first two months of the year. However, this trend is set to slow down to a more sustainable growth rate.
Before completing a home improvement project, you should verify that your contractor is licensed. Many counties classify engaging in home improvement without a license as a Class A misdemeanor. Fines for these violations range from $500 to $5,000.
You should also find out if your home improvement project is considered a capital improvement. In this case, you may be able to take advantage of tax breaks.
If your home improvement project is considered a capital project, you may be eligible for the sales tax exemption. In many states, you can take depreciation on your cost basis.