There are many ideas that are practical to achieve a beautifully remodeled kitchen or bathroom that may also be a financial investment that can yield a tax saving for you. Starting early in the year is a good time to start exploring the possibilities and the benefits.
The federal government indicated last year that their objective and policy was to maintain a low interest rate environment for lenders to be able to offer low rates to their borrowers. This may open up the possibility for you to take advantage of this unique opportunity in the present financial landscape.
Congress and the government have clearly committed to lower interest rates to stimulate the economy and offer tax benefits at the same time. Americans now know who the President is going to be for the next 4 years, so opportunities to enhance one’s assets appear to be in place. This current opportunity is now and you can take advantage of this unique financial opportunity by updating your kitchen and bathroom. You may kick yourself if you don’t at least check out what’s possible. Who knows – you may be in a position to receive tax savings that you never dreamed possible, but you won’t know that until you gather a few bids and discuss them with your tax advisor.
First, plan to see what is possible to do with the space and budget you have to work with. Get ideas about how much it will cost with a contractor who specializes in kitchen and bathroom remodeling projects. Then check with your tax adviser to see what benefits are possible. Contractors usually are more than happy to help potential customers plan. They will bid for your business. There are many ways to go, but first know what kinds of tax breaks are possible. This will help in your planning process.
Second, do what you can afford once you have run the numbers and consulted your tax advisor. Perhaps it will be the bathroom this year and then the kitchen next year. However, doing both may yield better cost savings now at the beginning of the year. Get the numbers together and see what is possible.
Third, keep in mind that sometimes contractors offer a bonus only if you ask for them. Perhaps it may be a vanity sink discount or possibly a fixture upgrade. Sometimes there are other incentive promotions available.
Above the possible tax savings from a home improvement project keep in mind the exhilaration of improving your home environment. Also it is an opportunity to build your relationship with your partner or spouse. Togetherness breeds unity and offers additional opportunities to exercise negotiating skills that can enhance any relationship, especially a domestic one either as a partner or as a spouse.