Home improvements, unless made for medical reasons, aren't directly deductible. However, they can add to your home's basis, which may reduce taxable gains when you sell.
It depends on the condition of the existing structure, local regulations, and budget. Gutting might be cheaper, but rebuilding ensures everything is up to current standards.
For general flooring installation, no. However, more complex tasks, especially those involving structural changes, might require a license.
The ease varies by state, but generally, a minor home improvement or specialty license might have fewer requirements than a general contractor's license.