As tax season enters full swing, you may be looking at your home improvements wondering which of them qualify for a tax break. After spending money to add a deck, replace windows, or build a custom Myrtle Beach sunroom, it’s a natural question to ask what tax benefits may be available.
Before exploring the possible benefits, remember to keep track of your home improvement expenses. While you can’t deduct the cost of the home improvement project the year you make the investment, having proof of the cost may help reduce your taxes when you decide to sell your home.
Home Improvement or Repair?
The money you put into your home ciphers into two tax categories: the cost of repairs and the cost of improvements.
Investments you make for capital improvement go toward the tax basis in your home. When you decide to sell your home, the tax basis is what you’ll subtract from the sale price of your home to determine your profit. A capital improvement, like a Four Seasons Sunroom, increases your home value, extends its life, or adjusts it for new purposes.
While there’s no definitive list of what constitutes a home improvement, a sunroom, swimming pool or pool enclosure are all included. Other improvements like a new HVAC, water heater, or adding storm windows also counts.
The cost of home repairs, however, isn’t included in your tax basis. Jobs like repairing a fallen gutter, filling a hole in the wall, or replacing a window pane are considered repairs, not improvements to the property.
Keeping financial records for the improvements you make to your home may come in handy if you decide to put the property on the market.
If you’ve been in your home for several years and the home values in your neighborhood are on the incline, a percentage of your revenue in a sale could be taxable. Reduce the taxable amount by keeping track of home improvements and adding the investment amount to the tax basis of your home.
Sunroom Adds Value To Home
There are several reasons to add a Myrtle Beach sunroom to your home. Whether you’re considering a Three Seasons or Four Seasons Sunrooms for your house, the sunroom adds functionality, space and value to the house. A Myrtle Beach sunroom is a cost-effective way to enjoy the coastal climate weather and give your family more space.
The average return on your investment for a Myrtle Beach sunroom is about 60 percent, but some real estate experts estimate it could be as high as 80 percent. In addition, a Myrtle Beach sunroom adds value to your home by increasing the square footage of your living space. You’ll also drastically increase the curb appeal of your Myrtle Beach home by adding a Four Seasons Sunroom.
Hiring a reputable contractor to build your Myrtle Beach sunroom will add space, functionality and value to your home. Contact the Carolina Home Exteriors team for your complimentary consultation to discuss which Myrtle Beach sunroom best fits your needs.