Client FortuneBuilders Featured in Trulia.
Condering how to spend your tax refund? These projects do more than pay for themselves.
Tempting as it may be, a new TV or much-deserved vacation might not be the smartest use of your tax refund. (Although they might be the most fun.) If you’re toying with ideas on how to spend your tax refund, you might want to make use of your tax windfall by making a few home upgrades instead. We’re not talking about merely painting a few walls and calling it a day. Instead, it’s about being strategic in choosing projects that will add more value to your home or allow you to take advantage of tax credits next year. Think about it: Once you factor in these benefits, it’s as if you’re getting paid to fix up your home.
We consulted home improvement experts with one goal in mind: figuring out how to maximize your tax refund by spending it on DIY home projects to boost your home’s value. Here’s what they recommend, depending on your refund amount.
Swap out fixtures and accessories. These days, you can find energy-efficient faucets, light bulbs, showerheads, and fixtures. It’s not just a smart decision to install them for savings on energy and water bills; these additions can also pay off next year at tax time. Than Merrill, former host of A&E’s Flip This House and CEO of FortuneBuilders, says they would be considered a “capital improvement,” which qualifies homeowners for a deduction as high as 10% of the costs up to $500 (the nonbusiness energy property credit). If you have a little more money in your tax refund budget, also consider energy-efficient alternatives for your washer and dryer, HVAC, and toilets.
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