home improvement?
Do you have to take out a loan to do a home improvement to get a tax benefit? Or is it ok to pay the contractor in cash right from your savings?
Do you have to take out a loan to do a home improvement to get a tax benefit? Or is it ok to pay the contractor in cash right from your savings?
STEVEN F
If there are still tax credits for whatever you plan to do, the source of the funds is 100% irrelevant to the tax credit.
Slickterp
No, you do not have to take out a loan. Home improvements are not tax deductible, there is almost never a tax benefit, other than for some energy efficient items.
Judy
You csn pay however you want to. But what kind of tax benefit do you think you're going to get
curtisports2
The only extra benefit you get from financing home improvements is the small interest deduction, and that's only if you itemize instead of taking the standard deduction, and with the standard deduction now $12,000 (single) and $24,000 (married filing jointly), fewer people will be itemizing.
Other than that, you get the same benefit anyone else gets, and that's the right to add the cost of home improvements to the cost basis of the property, so that any potential profit down the road will be reduced.
?
You don't get a tax benefit for home improvements. With the new tax law, home equity interest isn't deductible anyway and personal loan interest hasn't been for many, many years. No reason to take a loan as long as you have adequate savings.