When putting your house on the market, you can increase its value, or at least its attractiveness to serious buyers, with repair and replacement projects. Yet, these projects don’t guarantee positive results.
Capital Improvements Can Be Tax Deductible
Certain renovations can lower your capital gain, which, in turn, decreases your tax obligation.
This notion only applies to capital improvements. The Internal Revenue Service (IRS) defines these projects as those that add value to a house, prolong its life or help it adapt to new uses. As long as they are done at least one year before the property sale, your expenses can be added to your cost basis.
Again, not all renovations qualify as capital improvements. Residential roof replacement and a siding upgrade are some of the notable projects that can reduce your capital gain.
Protection Plans Can Enhance House Marketability
New upgrades come with warranties, which can help your house sell faster and for more money according to certain studies. According to statistics, using home warranties to sweeten the deal can help you sell in 11 days and pocket up to $2,300 more.
Necessary Repairs Can’t Be Included
Regular maintenance duties normally do not count as capital improvements. For example, the cost of fixing faulty shingles can’t be included in your basis since a buyer expects your house to be leak-free. But when the repair is part of complete residential roof replacement, then all of the expenses can be used to lower your capital gain.
The lesson is that you should tackle repairs with strategy to get the most financial gain out of them. Otherwise, you may not be rewarded for your effort.
Boost your home’s value and salability with Hill Roofing Corporation. Call us at (703) 291-0311 to request a FREE estimate for your roofing, siding or window project in Arlington or Manassas, VA.