CurlTalk

Financial question

claudine19claudine19 Posts: 4,486Registered Users
What makes more sense: putting an upgrade of new windows for my house on a low interest credit card, or starting a home equity line of credit with a similar rate? I know I can write off home equity loans, but if the rate is not as good as my credit card, does that make sense? Also, can I not write off a home upgrade if it's on a credit card?

Or, should I just put up with the ugliness of plastic over the windows in winter for the next decade, until my house is paid off, since then I'll have nothing but equity?

It's cold in here.

TIA
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Comments

  • Like.AustraliaLike.Australia Posts: 2,544Registered Users
    I think it depends. Does the credit card offer any benefits? Points, cash back, rewards of some kind? If not, I'd probably go with the LoC. At least with that, you know the benefit of writing it off and they're less likely to say, change the terms on you than a credit card. Also, I think there are some tax credits for energy efficient windows, regardless of how you pay, so I'd look into those too.
  • claudine19claudine19 Posts: 4,486Registered Users
    I saw something about that in my research: up to 30% tax credit with no cap through 2016.

    I'm seeing a new accountant this year; I should ask her. D'uh.

    Thanks!
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  • goldygoldy Posts: 5,455Registered Users
    Not only tax credits for energy efficient windows but did you check with your utilities company to see if they offer any rebates. My company offers $2/sq foot rebate on newly installed energy efficient windows.
    Poodlehead wrote:
    Ah, it all makes sense now. Goldy is the puppet master! :lol:
  • claudine19claudine19 Posts: 4,486Registered Users
    They still owe me a $50 rebate for buying an energy efficient washer, so I'm doubtful they'd come through. We just finished a class action lawsuit against them as well, so it's known they're greedy and cheap.
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  • macluanmacluan Posts: 326Registered Users
    I'm not sure about what is available for you locally but Federally there is a 10% credit up to $200 on Qualifying Energy Efficient Windows. The 30% is on Alternative Energy ~geothermal, wind and solar.

    To decide what is the better option for you, first calculate the savings on your taxes. By taking your tax rate x estimated interest expense for the year, subtract that from the total interest expense. Then look at the credit card and what interest expense that would be. I'm not sure how long this will take to payoff but do this for that total time. Then add any fees, miscellaneous charges to the respective loans. It all comes down to numbers.
  • claudine19claudine19 Posts: 4,486Registered Users
    Ah.

    Thank you.
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    Dogs and nature abhor a vacuum.
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