5 Effective Ways To Use Your Tax Return To Add Value To Your Kansas City Investment Property

If you’re an investor in Kansas City, a great way to leverage your tax return is by adding value to the properties you already own. In our latest post, discover key improvements that can enhance the value of your Kansas City investment properties.

While many people spend their tax return on something material or short-lived, consider putting yours toward building equity in your property instead. Rather than investing in a new tablet or TV, using your tax return to add value to your home can bring lasting rewards. Keep reading to discover some of the best ways to use your tax return to enhance your Kansas City investment property.

5 Effective Ways To Use Your Tax Return To Add Value To Your Kansas City Investment Property

Increase Efficiency

Upgrade old, worn-out appliances with modern, energy-efficient models. These new appliances can pay for themselves over time by reducing both utility bills and maintenance costs. For rental properties, efficient appliances can be a significant draw, as prospective tenants who cover their own utilities will appreciate the potential savings. Enhancing appliance efficiency will provide long-term benefits and add lasting value to your property.

Curb Appeal

Simple updates to your front yard can have a major impact on your property’s curb appeal, making it more attractive to potential buyers or renters. First impressions are crucial, and the exterior of your home is the first thing people see. Small changes can create a fresh, welcoming atmosphere that draws them in.

Start with easy fixes, such as replacing your front door, mailbox, porch light, and house numbers. These are all relatively low-cost updates that can give your home an instant refresh, creating a more modern and inviting look. A new front door, for example, can transform the entryway, while updated house numbers or a stylish mailbox can add a touch of character.

Beyond these updates, improving the landscaping can make a significant difference without breaking the bank. Adding flower beds, trimming overgrown bushes, or planting trees can create a lush, vibrant exterior that enhances the overall appearance of your property. Even smaller touches like fresh mulch, neatly maintained lawn, and colorful plants can make your home feel well-cared-for, increasing its appeal to potential buyers or renters.

These relatively inexpensive updates can dramatically improve the look of your home and create a positive first impression, often yielding great returns when it comes time to sell or rent.

New Paint

Painting a room can instantly transform its look and feel, giving it fresh life. It’s also one of the most cost-effective home improvements, especially compared to other renovations. With a bit of effort, you can likely handle the job yourself, covering only the cost of materials and a small investment of your time..

Flooring

Upgrading the flooring in a room can dramatically change its overall look. Even if you don’t redo the entire house, updating floors in just one or two rooms adds significant appeal to your property. Whether you choose tile, laminate, carpet, or wood, new floors can make a powerful impression on potential buyers and renters alike.

Kitchen

Updating your kitchen doesn’t require a major renovation—adding a backsplash or replacing hardware can make a big impact. You could also repaint outdated cabinets to give them a fresh look and feel. If you have an appliance nearing the end of its life, now is the ideal time to start shopping for a replacement, instead of waiting for it to break down at the worst possible moment.

Home Improvement Deductions

Although improvements to your Kansas City investment property aren’t typically tax-deductible, it’s essential to track your expenses. When you enhance the property, these costs can be added to your tax basis, potentially reducing taxable gains when you sell. Current tax laws already exclude the first $250,000 of profit from taxes, so tracking each dollar may not be as critical. However, by investing your tax return in property upgrades, you’re not only attracting more tenants but could also see long-term financial benefits. Remember, this applies to value-adding improvements rather than everyday repairs.

To learn more about how to use your tax return to add value to your investment properties, we can assist. Send us a message or contact us today! (816) 724-6679‬

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