May 2009Volume 1, Issue 3   
 
 

How To Select A Contractor, Part 3

DANGER SIGNS!!

    As we get close to wrapping up this series, there are some 'Danger Signs' to be aware of during the process of choosing a contractor. Being aware of these can be extremely helpful in separating the professionals from inexperienced or unethical contractors.

     • Work Done Without Proper Permits - Be suspicious of any contractor that wants to do business illegally. This could indicate that the contractor does not want his work inspected. Would you let a surgeon open you up if you weren't sure they were legally allowed to do surgery? Then why would you entrust your home and your family to someone who is doing the same thing?

     • The Lowest Bid - If a contractor's bid is very low, it could signal a few different things. First, it could mean that proper insurance is not maintained. Be sure to find out whether the contractor carries both workers compensation insurance and liability insurance. A really low bid may also mean the contractor is inexperienced and does not run a business that has staying power. This can render any warranties useless, as the contractor will not be in business long enough to honor any warranty issues. Finally, a low bid could also mean that important pieces of the scope of work may have been left out. Always make sure you get a good understanding of what is included and what is not in the contract!

     • No Proof of Insurance - As mentioned above, it is important for the remodeling professional you choose to have proof of both workers compensation and liability insurance. Unfortunately, California law does not require contractors to carry liability insurance, but it is critical to the protection of your home when you are having work done on or in it. Without it, you could be liable for injuries on the job and/or damage to your property!

     • 'I Don't Take Checks' - This could mean the contractor's credit is questionable and subcontractors and suppliers may not get paid. There is also no payment record when paying with cash. It is important that your contractor has a professional system for accounting, invoicing and producing receipts for your own record keeping.

     • No Written Contract, or Contract is Poorly Written/Unprofessional Looking - Always insist on a written contract! Don't accept a contract with no contact information and/or license number. Be suspicious of contractor's professionalism if contract is handwritten or unclear. And again, be sure you understand exactly what the contract includes and excludes.

     Next month, we will finish this series with an article focusing specifically on contracts. It will help you understand what a professional contract should look like, what type of information should be included in a well-written contract!

 
 
 
 
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Years of Experience Specializing In:
• Kitchens
• Whole House Remodels
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• Bathrooms
• Custom Homes
• Home Automation
• Additions
• Green Building
• Window Coverings
And More!
 
 
 
 
 



Cartoon Art Museum

The Cartoon Art Museum is one of three museums in the United States dedicated to the preservation and exhibition of cartoon art in all its forms. This unique institution houses approximately 11,000 original pieces in its permanent collection; a complete volume research/library facility is located on the museum's premises. In addition to seven major exhibitions a year, the museum has a classroom for cartoon art and a bookstore.



Bay Area Discovery Museum


Located at the foot of the Golden Gate Bridge, the nationally recognized Bay Area Discovery Museum is a one-of-a-kind indoor/outdoor family museum that offers a full range of activities for children ages six months to eight years. The Museum's unique programs feature hands-on art and science exhibitions, special performances and cultural festivals - all with a focus on fun!



Lindsay Wildlife Museum


Lindsay Wildlife Museum is a wildlife rehabilitation and educational center that focuses on native California wildlife and natural history. The museum exhibits live, non-releasable native wildlife. Founded in 1955, the museum operates the oldest and one of the largest wildlife rehabilitation hospitals in the United States, treating more than 6,000 injured and orphaned wild animals each year.
 
 
 
 
Federal Tax Credits for Energy Efficient Improvements!

     As part of the Economic Stimulus Plan (American Recovery and Reinvestment Act of 2009), homeowners can take advantage of up to $1,500 in tax credits (or up to 30% of the cost) for home improvements that meet the qualifying efficiency requirements. There have been some recent significant improvements in this program, including an extension of the program to December 31, 2010!

What's The Difference Between a Tax Credit and a Tax Deduction?
     A tax deduction reduces the amount of income subject to tax. For example, if your taxable income is $25,000 and you have a $500 tax deduction, your taxable income would be reduced to $24,500. A tax credit actually reduces the amount of tax you have to pay! For example, if you owe $800 in taxes at the end of the year, and you get a $300 tax credit, then you will only owe $500. If you are getting a refund at the end of the year, you can still most likely collect the entire tax credit, as long as the total amount of income taxes that you have paid throughout the year (check your W2 for this amount) is more than the total amount of tax credits that you are claiming. You generally can't get more money back from the government than you paid in income taxes with the exception being 'refundable' tax credits, such as the Earned Income Tax Credit. (Obviously, you should always check with your tax advisor regarding these matters.)

What Kinds of Improvements Are Eligible?

     For existing homes that are the taxpayer's principal residence, tax credits are available for qualifying:

• Windows
• Doors
• Insulation
• Roofs (Metal and Asphalt)
• HVAC
• Water Heaters (non-solar)
• Biomass Stoves

     For both existing homes as well as new construction, tax credits are available at 30% of the cost with no upper limit through 2016. Second homes and rentals do qualify for these credits as well. Some of these products include:

• Geothermal Heat Pumps
• Solar Panels
• Solar Water Heaters
• Small Wind Energy Systems

How Does This Federal Tax Credit System Work?

     Products must be 'placed in service' from January 1, 2009 through December 10, 2010. The IRS defines 'placed in service' as when the property is ready and available for use. The product must have a Manufacturer Certification Statement to qualify. A Manufacturer's Certification is a signed statement from the manufacturer certifying that the product or component qualifies for the tax credit. The IRS encourages manufacturers to provide these Certifications on their website to facilitate identification of qualified products. Taxpayers must keep a copy of the certification statement for their records, but do not have to submit a copy with their tax return. Be sure to save your receipts and the Manufacturer Certification Statement for record keeping as you will have to file it when you are doing your tax returns. Improvements made in 2009 will be claimed on your 2009 taxes (filed by April 15, 2010) - use IRS Tax Form 5695 (2009 version) - it will be available late 2009 or early 2010.

Visit the Energy Star Website at www.energystar.gov/taxcredits for all of the details on this program, or feel free to contact us at (408) 274-6060 if you have questions or are interested in adding any of these energy efficient improvements to your home.
 
 
 
  

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     Call Daniel Mackey Construction today and ask to speak to one of our window coverings specialists to schedule your free in-home consultation!
 
 
 
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Phone (408) 274-6060
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