Wednesday, February 4, 2009

Taxes Smaxes

This tax year there is a $7,500 refund (if you chose to take it) for first-time home buyers. There were a few stipulations that I was unsure about. In short, starting in 2010, each tax year we are to pay $500 back towards the "refund" every year for...15 years. Yeah, that's a long time (so the refund is basically an interest free loan from the gov't) . Also, if you sell the house, you are to pay back the entirety of the "loan" the next tax year. So, if we sold the house in 5 years, we'd have to pay like $6,000 (or whatever). Yowzer.

Well, we decided to take it...free money!

Steph posed a great question to me: Whatcha gonna do with all that cash?

To which I thought to myself (while singing Fergie): "Whatcha gonna do with all that cash, all that cash...in yo' stash?"

I obviously could spend this money very, very quickly...on clothing. What Not To Wear style! But...that wouldn't be financially smart of me now would it?

So, what I have done is compiled a list of things that I want to do with this money (honestly, I am not a list person, but when it comes to money...you gotta doooo eeeett!)

  • Replace carpeting in the bedrooms
  • Replace tile flooring with wood flooring
  • Replace the fake cabinetry throughout the house with some good stuff (including bathroom vanities)
  • Granite counter tops in the kitchen
  • Replace kitchen sink
  • Make our landscaping more appealing
  • Buy a new stove and dishwasher
  • Replace ugly-arse gold lighting fixtures
  • New closet doors & closet shelving
  • Annnndd I'd like to use a little to pay off a credit card :D
Umm yeah, I'm pretty sure after all of that our money will be long gone! Haha. We don't plan on doing all of that at once, of course :) We are more DIYer type people so we will also save a lot of money on labor. Plusss, when it comes to selling our house someday all of those things are definitely well worth the money (hmmm I think I watch too much HGTV!). I feel very fortunate to not only have purchased a house in this economy, but everything is cheaper right now in regards to home renovations.

What do you think of my list? Trying to be as smart as we can with the money so that we will actually make way more off of it :)


PS...I still owe you a post on our, now, purple bathroom...coming soon I promise!!!!!!!!

13 comments:

*jimaie.marie* said...

All of those suggestions sound good to me! SO EXCITING! Of course I dont own a house and have no idea what I'm talking about but y'know :P

And yes! I need to see pics of the purple bathroom!!

Shannon said...

I friggin LOVE HGTV. Like, obsessively. I would really enjoy seeing before and after shots of the work both of you put into it!

Steph said...

I am SO GLAD you took the credit. I think it's a great way to spruce up your house for reals.

And this list is great, nothing I would add, but I would move the light fixtures higher up the list, just because those are so relatively cheap and easy to do, while making a big impact. I can't wait until you get the money and get to start doing all this fun stuff!! :)

See Sherm Blog said...

SWEET! Had we purchased our home in 2009, we totally would have taken the refund.

Oh and thanks for getting that Fergie song in my head now. :-)

Can't wait to see all the fun stuff you will be doing to your home this year!

sohobutterfly said...

Sounds great! If you house needs a little spiffying up for you to be blissfully happy in it, then I don't think the money could be any better spent. :o)

Mermanda said...

Um. Hi. If I'm not working or blogging, there's a very good chance I'm watching HGTV. Andrew and I have become complete addicts since we starting planning for buying our first home. And those all sound like very smart improvements... but I'm aghast at how much those granite counter tops cost... upwards of $8k! I don't think I'll have have that kind of money to spend on a counter top... but a girl can dream.

Sara McGinness said...

that is so awesome, I love the list and I think you should keep us up to date on all the things you do with the house. It would be fun to see what you guys can do with 7500 dollars. Me, I would take a vacation to some far away exotic land, but that's me and I don't own a home so home improvement is not something I think about.

seriously can't wait to see all that you guys do!

ohnoitskristin said...

You should TOTALLY replace the flooring FIRST! That's a MUST! What about a new sink in yo kitchen???

sarah marie p said...

Wow! $$$ SO exciting!!! I love all of the home improvement stuff you have planned -- and I can't wait to see you blog about it/ post pictures of your DIY journey! Btw, your house is so gorgeous already! I love wood floors -- I think you should def do that!

MissBr0wniis said...

$7,500 wow! Go Government! Too bad they couldn't just give it to you without all of the stipulations like paying it back $500/year. Though that doesn't seem like too much.

I love your plan for spending it! Most people would be frivolous with the money. Instead your adding value to your home. (I'm an Interior Design student, I this kind of stuff excites me beyond belief)

xoxo

Wearing Mascara said...

Hey there!!

Great refund that's awesome!!!! Thanks for stopping by my blog. Yours is a great read! Can't wait to read more :-)

Julie

*CPA* Su said...

How fun are all those little additions you have planned! Then you'll have to have another bloggy party to show it all off! :)

Kyla Bea said...

Sounds like a great plan!

I would say that the best plan would be to invest it in things that would effect the resale value - ie, kitchen and bath. Even if you use it all to upgrade your kitchen, that could mean that when you sell, paying that $7500 back is no problem.

Have fun too! Wow!