Q. Is it ok just to ask cabinet company people to just come out and give me estimates? How do I know if I am getting an accurate estimate? How many estimates should I request? How much information do I need to give the estimator? I am concerned about "offending" companies by asking them give me estimates then not following through with the work. We are planning a complete kitchen remodel, floor, cabinets, fixtures appliances. Where should we start to get the best estimate?
A. I used to design kitchens. This is the best advice I can give you:
Establish a budget for your work BEFORE you start. If you have $10,000 or $100,000 to spend, know that amount and work with it. Being unsure of your total possible expenditure is the fastest way to get ignored by designers and contractors. A kitchen is not a cheap room re-do.
Investigate what you like and what you want your room to look like in advance. Designers need parameters to work with. No one knows your tastes and desires bettter than you. Having any less than an idea of what you want to project to be like finished is a sure way to be disappointed in the outcome.
Know the scope of the work you want to do. new cabinets? countertops? Flooring, wallcovering, lighting, appliances, etc?? do you need to upgrade your plumbing, wiring, ventilation? These and many other questions should be answered first. If your budget doesn't allow for any of these items, you may have to set your sights lower.
Hire a designer.. a kitchen designer. This is someone that you PAY to handle drawings and design. a qualified designer will help you answer all of these questions and give you a good idea if your budget is close to adequate. Expect to pay this person and be sure that you are comfortable with them. In many cases, the designer will credit their fees if you buy the project from them. Hire a CKD if you can (Certified Kitchen Designer)
With drawings and specs in hand, you can look at different types of products and talk intelligently to prospective contractors to handle your work. You will be working on an even plane with all parties involved since there is one set of parameters with which to work.
A kitchen renovation is a BIG project and can be a lot of fun, but there are also heartaches involved. It takes time, can be messy and you will be eating a lot of meals out. Expect the project to take a little time and be patient.
A new kitchen will make life much better in the long run and will increase your home's value. It's a good investment.
Remodeling a kitchen - how long did it take, how much did it cost?
Q. My husband and I want to remodel our kitchen and would like to plan for the time and costs. How long did your kitchen remodel take and were there unexpected expenses you hadn't counted for that came up? Were you happy with the outcome of the kitchen based on what you spent?
A. It took 3 months..... we did it ourselves and it cost 27,000$ Canadian....
Unexpected expenses: wiring that was no longer any good, having to buy more tiles, redoing the floor base to make it smooth for the new tiles (because pulling up the old ones ruined the floor underneath) and having to make a new countertop instead of just being able to relaminate the old one (the wood underneath the old laminate was rotting).
Yes... very happy with the outcome! We have just sold the house... paid it 133 500.00$ just over 5 years ago.... just sold it for 279 500.00$... I'd say that definitely covers the cost of the kitchen renovation!
We may be on a home remodelling show. Will we have to pay gift tax?
Q. Our family may be appearing on a kitchen remodelling show in the near future. Are we going to have to pay a gift tax on the portion of the remodelling we do not contribute financially to? For example, we contribute $5,000 towards a kitchen, and the TV network creates a kitchen worth $20,000. Will we owe taxes on the difference?
If it is claimed as income, is it claimed at the same percentage as my fulltime job?
A. First of all, ignore the "rent" answer entirely....way off the mark.
Second, the recipient of a gift NEVER pays tax on the gift for federal income tax purposes. Allow me to repeat...NEVER! If Bill Gates gave you a billion dollars, you would owe the IRS zero dollars and zero cents income tax. Your state may be different.
So, you are probably thinking why people who were given cars on the Oprah Winfrey show had to pay tax. It is because they officially "won" the car. They were not given cars, they won cars. I am not very well versed on when exactly something is given or won, but I bet it has something to do with General Motors or someone who wanted to write-off the cost of the cars instead of eating them. You see, sometimes the giver of a gift pays a tax even if the recipient does not. If Bill Gates gave you $1 billion, he would end up paying an additional amount (nearly $500 million) in gift taxes to the IRS. This is different than income tax and has something to do with estate tax. Only the payer pays a gift tax (when the gift is excessive)*. The recipient of a gift never pays any federal tax. So, maybe to avoid a gift tax, or maybe to be able to write off the cars, they called them all prizes and not gifts.
Therefore, ask the show if the kitchen improvements are a gift or a prize. Believe me, the show knows more about this than I or anyone else on this board does. They've answered your question a million times before for other people.
Finally, if it turns out that you have to claim the "winnings", it is added to your income just as if you made that much in interest. Exactly what rate you will pay on that amount depends on how much other taxable income you have. If you are in the 25% marginal tax bracket already, then you will pay 25% of the winnings in federal income taxes. Of course, if the winnings cause your new, total, taxable income to go over into the next tax bracket, then the amount of winnings to get you to the threshold will be taxed at your marginal tax rate (25%) and the remainder will be taxed at your new tax rate (33%).
OK?
* Anytime someone gives more than $12,000 ($11,000 for 2005 and earlier) to a single person, they have to file a gift tax return. It is only after that person gives more than $1 million total to all recipients do they start to owe taxes. Therefore, if you gave me $12,000, you would not have to fill out any extra forms. If you gave me $13,000, even though you would have to file a gift tax return showing a gift of $1,000 ($13,000 - $12,000), you would owe nothing. Once your gift tax return lifetime total exceeded $1 million will you start to pay tax on your gifts. Of course, gifts to charitable organization are exempt from gift tax.
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