Consider Refacing Your Cabinets for a Potential Tax Break

Property tax laws in some states are prompting people to renovate their homes instead of buying new ones. How does a kitchen remodeling project like cabinet refacing potentially offer you a tax break?

Don’t Tax Your Budget

If you own a home in a state like Florida, beware of your state's property tax laws before you consider buying a new home. Regardless of how fast the market value of your home rises, property taxes can only rise to a maximum of 3% a year, as long as it is under the same ownership. Your entire neighborhood market value could rise sharply, however, with the 3% law in effect, you won't have to pay the property taxes based on the inflated market value of your home, which would be larger than 3%.

But buyer beware; if you buy a new home, you won't qualify for the 3% rule. Your property taxes will be based on your home's new market value. This may inspire you to remodel your home instead of moving to a new home. You can focus on a kitchen remodeling project that will yield a high return on investment, like kitchen cabinet refacing.

Kitchen Cabinet Refacing: An Alternate Plan

According to market research, kitchen remodeling is one of the best ways to yield a high return on investment (ROI). In some areas, the ROI for kitchen remodeling projects can be over 100%. Kitchen cabinet refacing makes economic sense because it increases profit margins on the already profitable kitchen without high kitchen remodeling costs.

Kitchen cabinet contractors can affix laminate or wood veneers onto the existing cabinet surface, creating a new look for your cabinets. With some staining and new hardware, you can completely change the look of your kitchen at only about one third of the remodeling cost of installing new cabinets.

Before you move, take your property tax laws into consideration. You may opt to upgrade your current home with a relatively minor remodeling project like kitchen cabinet refacing. You can also increase the value of the house and its ability to sell.

Sources:
Taxes Encourage Kitchen Cabinet Refacing – Face Your Kitchen
Home Improvement Tips – Add to the Value of Your Home
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