Calculating Reserves for Maintenance and Renovations: How to Save on Taxes

Calculate reserves for maintenance and renovations – save taxes

When you reach retirement age, not only are mortgage holders getting older, but home ownership is also usually getting a bit old. The need for maintenance and renovation increases accordingly. Switching from the old oil heating to heat pumps is a costly affair, because additional measures such as new insulation and windows also have to be taken in many cases. Homeowners usually cannot avoid these measures, because this is the only way to keep the property from depreciating over time. Better sales prices are already being requested for real estate that offers climate-friendly heating and optimized heat and insulation technology. However, the costs are only one part that needs to be taken into account in budgeting and liquidity planning. On the other hand, there are tax savings that result in high savings. With good planning, depending on the canton, the reduced tax bill can mean that the cantonal tax burden falls to practically zero, as a trustee from Bern explained to cash.ch. Accordingly, tax planning and optimization are extremely important in renovations and refurbishments.