| Many people take advantage of home remodeling | | | | considered remodeling your bathroom to earn |
| to increase their home value. They often sell their | | | | more on a home sale, don't forget the following |
| property quicker and at a higher price thanks to | | | | areas to update: |
| their home remodeling achievements. Many times | | | | - Cabinets |
| you can earn $2-3 on every $1 you spend. That | | | | - Counter Tops and Vanities |
| means remodeling your home can actually earn | | | | - Sinks |
| you money. | | | | - Flooring and Tile |
| The problem is most people aren't sure where to | | | | - Tubs and Showers |
| start with their home remodeling project. The | | | | Home Remodeling Cuts Taxes |
| two most popular areas to increase home value | | | | Another fact that many people don't realize is |
| via remodeling are: | | | | there can be an additional benefit to home |
| - Kitchen Remodeling | | | | remodeling when tax time comes. Here's how it |
| - Bathroom Remodeling | | | | works: |
| The wonderful thing about these two areas of | | | | When you earn money on the sale of a home, |
| home remodeling is they aren't very large in | | | | you're charged a capital gains tax. What that |
| nature. Unlike opening a den where you need to | | | | means is any money you make over the value of |
| remove walls, a bathroom remodeling or kitchen | | | | a home can be taxed. However, according to the |
| remodeling project is done on a smaller scale. As | | | | IRS's Publication 523, Selling Your Home, you can |
| a result, you don't have to spend nearly as much | | | | declare certain improvements you made to a |
| money on your home remodeling project to | | | | home, like kitchen remodeling or bathroom |
| make your house look fresh and new. | | | | remodeling. This can also include items such as: |
| But let's discuss some specific projects that will | | | | - Additions such as bedrooms, bathrooms, decks, |
| increase your home value in these two particular | | | | garages, porches or patios. |
| areas. | | | | - New plumbing or wiring. |
| Kitchen Remodeling | | | | - Any new heating and/or air conditioning units. |
| If you're considering remodeling your kitchen, a | | | | - Interior upgrades such as built-in appliances and |
| good place to start is with the cabinets. That's | | | | wall-to-wall carpeting. |
| because they're one of the first focal points you | | | | - Exterior upgrades like paving the driveway. |
| notice when entering any kitchen. A fresh coat of | | | | Any tax-acceptable improvements are those that |
| paint on any exposed walls also helps. Not only will | | | | add value to your home and prolong your home's |
| the room smell fresher, it will look new as well. | | | | useful life according to the IRS, not you. So check |
| Other items on your to-do list can include: | | | | with your accountant who knows IRS tax law to |
| - New Appliances | | | | make sure any home remodeling you do will be |
| - Stainless Steel Sinks | | | | covered. In addition, be sure you save receipts so |
| - New Counter Tops | | | | you have proof of cost. |
| - New Tiles or Backsplashes | | | | Where To Look For Kitchen and Bathroom |
| - Hardwood or Laminate Flooring | | | | Remodeling Products and Services |
| Kitchen remodeling can also include new furniture | | | | If you're not a do-it-yourselfer, it's probably best |
| such as breakfast nook tables and chairs, island | | | | to get quotes from home improvement |
| carts, or barstools. You don't need to spend a | | | | contractors to help you with your remodeling |
| small fortune on your kitchen remodeling project. | | | | project. Most of the products needed for your |
| It just needs to appear visually appealing to | | | | project can be found in various retail outlets or |
| potential buyers. | | | | home improvement stores. However, you can |
| Remember, the newer your home appears, the | | | | likely save the most money by buying discount |
| sooner you'll sell it at a price you want. | | | | home remodeling products direct from the |
| Remodeling your kitchen is a cost-effective way | | | | manufacturer. |
| of doing just that. | | | | Remember, not only will remodeling your home |
| Bathroom Remodeling | | | | make it more livable and enjoyable for you, but |
| Much like kitchen remodeling, bathroom remodeling | | | | any renovations you make to your home will |
| also increases your home value. Better yet, the | | | | increase its sale price...and maybe save you |
| bathroom is even smaller in size than the | | | | money come tax time too. |
| kitchen...at least in most homes. So if you've | | | | |