Wednesday, August 28, 2013

Tax Exemption for Home Improvement

Local investor Mark Schmale offers this valuable insight for investors and homeowners that add home improvements, and can benefit from a little-known tax break:

I just discovered a tax incentive program for property owners that will be of interest to your students in WA.

It's called Exemption for an Improvement on a Single Family Dwelling (RCW 84.36.4000)

Basically, if you buy a junker and fix it up, you get up to 30% of assessed value exempted for the next 3 tax years.  That could help boost CF on all the keepers I plan on acquiring!  Easy one page application.

It's not supposed to include normal maintenance items (like a roof replacement), but the county employee told me that things that improve the look and value, like new kitchens, baths, floors, etc do qualify, so there may be some grey area here.

Happy Investing!

No comments: