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Typically, kitchen and bathroom remodels, energy-efficient upgrades, adding living space, and outdoor improvements like decks or patios can add value.
Remodeling usually involves changing the use or function of a space, often involving structural changes. Renovation is restoring a space to its former condition or making it modern.
It suggests homeowners should get at least three bids from different contractors to ensure they receive a fair price.
For personal residences, most home improvements like swimming pools, landscaping, and room additions are not tax-deductible. However, they might increase the home's cost basis, reducing potential capital gains tax when selling.