The Home Improvement Industry
The home improvement industry is thriving and is stronger today than it was ten years ago. It includes sales of building materials, appliances and decor, as well as the services of tradespeople. This industry represents a significant portion of the global economy. Many people in western societies value attractive, functional homes. In fact, more than half of all people surveyed planned to perform some form of home improvement in the next year.
The way you furnish your home can make or break a room. Investing in quality furniture can transform the appearance of your living room. While you might not consider buying new furniture as a home improvement, replacing outdated furniture can help you spruce up your home. Just make sure you follow the IRS’s guidelines.
Home remodeling spending rose sharply last year, but has tempered slightly in the first quarter of this year. While mortgage rates and inflation are taking a bite out of this sector, people tend to make improvements to their homes after remodeling. According to the Harvard Joint Center for Housing Studies, home remodeling spending is expected to show big jumps at the beginning of the year, a peak in the second quarter, and then decline to a more sustainable rate.
Home improvements are often tax deductible. Many are energy efficient and thereby qualify for a tax credit. In addition, home improvements that are carried out for business purposes may also be deductible. If you’re unsure of the exact rules, consult a tax expert. They can determine whether your project qualifies and help you with the proper documentation.