Home improvement is the process of renovating or making additions to one’s home. It can be done for a variety of reasons; to enhance living space, increase energy efficiency, or to prepare the house for resale. In the latter case, home improvements can be costly and are usually carried out with an eye toward increasing the property value of the home.
In recent years, the home improvement industry has reached excellent growth results. This sector includes the sale of building materials, appliances, decor, and other products for remodeling or improving a residential property. It also involves the services provided by contractors, tradespeople and other professionals.
The term “home improvement” is often mistaken for a home repair, but in reality it refers to any work that adds to the functionality or attractiveness of a residential property. Improvements may be made to the interior or exterior of a home, including landscaping, and they may include building projects such as adding a garage, putting in a swimming pool, or installing a new kitchen.
Most states have their own definitions of home improvement, but in general any work that is done to the home or property in order to make it more pleasant or functional is considered a home improvement. In New York, for example, if you hire someone to paint your home, it is considered a home improvement and therefore subject to sales tax. However, if you have documentation from the Department of Taxation that your project qualifies as a capital improvement, labor costs are exempt from tax.