Home improvement is an activity that involves making repairs, modifications, or additions to a home. Some of these projects increase a home’s value while others may only be cosmetic. Regardless of the reason for renovating, it’s important to plan before you start. Having a clear idea of what you want to do and a budget can help avoid overspending or going into debt during the process.
Many homeowners turn to television shows like This Old House or Fixer Upper to get ideas for their own renovations, and that may encourage them to take the plunge into a DIY project. However, it’s one thing to watch a show and another to actually complete the project. Some projects, such as replacing carpeting or refinishing hardwood floors, can be relatively easy and cost-effective. However, other projects, such as adding a deck or putting up a fence, can be more difficult and expensive.
When it comes to home improvement, each state has its own laws governing what is tax-exempt. For example, in New York, labor isn’t tax-exempt unless you have a document showing that the work meets the state’s definition of a capital home improvement. To find out more about what is and isn’t tax-exempt in your state, contact your local department of taxes or finance. You can also ask the contractor to provide you with a copy of the documents that meet the state’s requirements. This way you can check to make sure the company is charging you the correct amount for the work they are performing.