This year the Massachusetts tax holiday will be held this Saturday and Sunday (August 15th). While you may be planning on buying a new home entertainment center or that new iMac, you may also want to consider improving your home as well. You may even be able to use the holiday was a way to increase the resale value of your home.
Items that cost over $2,500 are exempt from the tax holiday, so that $4,000 big screen TV will still cost the same whether or not you buy it this weekend or not. Vehicles of any kind are also exempt from this. According to the state of Massachusetts, you also cannot buy an item that’s usually sold together separately in an effort to dodge the price limit. In example, if an expensive suit that usually sells for $4,500 cannot be broken down into a $2,250 pair of trousers and a $2,250 jacket. But individual items in the same sale are okay.
Here are four ways you as a homeowner can take advantage of the tax holiday this year
Appliances – The most obvious expense where you can save are appliances, which are included in the tax holiday. While a really good oven or refrigerator will put you over the $2,500 limit you can use this as an opportunity to purchase any number of appliances that will help your home value. Examples include a built in wine refrigerator ($500 – $1,000), a new range hood ($100 – $1,200) or a new dishwasher ($300 – $1,000)
Bathroom Remodel – While the remodel itself may cost you more than $2,500, a bathroom remodel may give you up to a 2% – 3% gain on your home. Buyers want a home that is clean and well-maintained, especially in the bathroom. You can use the tax holiday as an opportunity to buy things like caulking, grout, a new toilet ($100 – $750) or a new sink. If you’re even a little handy you might even be able to do some of these jobs yourself.
Windows – According to Remodeling magazine a mid-range vinyl window replacement costs on average of $9,720. This is with an average of 10 windows being replaced in a typical home. While this is above the $2,500 limit, that limit is for single items or items routinely sold together so the tax exemption will still apply. This will save you nearly $625 on the average window replacement.
Paint – If you’re thinking about selling your property soon, a fresh coat of exterior or interior paint can do wonders for first impressions during showings and open houses. If you have rooms that have unique colors, consider painting them to more neutral, softer tones to appeal to the widest possible audience.