With the terrible slump that has been going on in the housing market the past couple of years, many home owners are choosing to stay in the home they already have instead of moving into one that has a bigger mortgage payment. Financing has gotten a little tougher and with the economy the way it has been going, staying put just seems like the best idea.

One of the smartest ways to get some good tax deductions and increase the value of your home at the same time is to do home improvements. They do not necessarily have to be big ones, but everything that is done to a house that keeps it maintained in good condition and updated is a good way to spend your money. It improves the look of your home and everything you do is like putting money in a savings account that will pay off when and if you ever decide to sell.

If you are on a tight budget like so many of us are, there might not seem to be any extra cash lying around even for small improvements. If that is your situation, then choose home improvement projects that can be done for a small amount of cash and ones that can be done yourself. Painting is always a fairly inexpensive project that can usually be done by the home owner. Fixing plumbing problems and adding new faucets is a good way to update bathrooms and kitchens.

Light fixtures, ceiling fans, new outlets and switch plate covers are all inexpensive items that can make your rooms look better and can be installed your self. Laying new tile or laminated hardwood floors are great ideas to update floors. If a solid natural stone countertop is not in the budget, you might consider a stone veneer top instead. Insulating your attic and basement and weatherproofing things like pipes under the home may not do much for the cosmetic appeal of a house, but it can help on your heating and cooling bill, prevent pipes from freezing and makes one more good selling point if the time comes.

It is important to keep a log of some sort and all the receipts for whatever materials you buy for your home improvements. The materials purchased can be used for your tax return as deductions and the log of improvements you make and when they were done will be good to pass on to the future owner if you sell your house. A detailed list of all the improvements that have been made to your home will be evidence of all that has been done whether it can be seen or not.