A capital improvement can enhance your property’s value, increase its useful life or even adapt it for new use. Here are the benefits of making capital improvements to your home.
What Are Capital Improvements?
A capital improvement refers to the addition of a permanent structural change or restoration of some part of your property that will either prolong its useful life, enhance its overall value or adapt the property to new uses. To qualify, this improvement must endure for more than one year after the completion of the project. Capital improvements can increase the cost basis of a home, which can reduce the size of any taxable profit if the home is sold.
Examples of residential capital improvements include adding a deck, bathroom or bedroom. Other Internal Revenue Service (IRS) approved capital improvements include adding wall-to-wall carpeting or flooring, adding new built-in appliances or replacing a home’s current siding, roof or storm windows. Capital improvements typically improve the livability of a home and add value to the property. Capital improvements are also tax deductible.
Benefits of Capital Improvements
Capital improvements can increase the market value of a home, which is why many homeowners make them before putting their property on the market. Doing this also creates the opportunity for the homeowner to receive a tax deduction. Homeowners will also benefit from the improved living conditions created by any capital improvements that they make.
Design Build Remodeling Group of Maryland can help you with all of your kitchen remodeling and other home renovation needs because of our decades of experience, proven remodeling process and excellent customer service. We can make remodeling your home simple by guiding you through every step of the remodeling process. We serve many areas, including Bethesda, MD. Call us at (443) 300-2268 to learn more about our services and products or to schedule an appointment.
