Open Kitchen Tax Credit at Renovation: Decrease Income Tax for Child Care Assistance

Today, I want to discuss the “Open Kitchen Tax Credit,” a tax credit program to support childcare. This program offers the advantage of reducing your income tax if you install an open kitchen or other equipment when renovation. If you are considering renovation, please check to see if you can use this credit.

Overview of Income Tax Reductions

First, if you order an open kitchen and install it, we consider 1,477,720 yen as the renovation cost and you can deduct the cost when calculating your income tax.

Suppose the tax rate is 20%. The deducted amount will be approximately 30,000 yen. This reduction can be used to support childcare.

Even if the kitchen costs 600,000 yen, you can account for 1,477,200 yen. After examining the difference successfully, you should apply for the tax break. If you are familiar with filing tax returns, you can apply for the tax reduction by yourself. If you have hired a tax accountant, you must take the application documents, which will be introduced later, as soon as possible.

Remodeling that qualifies for tax breaks

I recommend the following three main types of remodeling that are eligible for this program.

Many ready-built houses include drop walls, allowing homeowners to customize the number of rooms based on their needs. For instance, if necessary, a large room on the third floor can be divided into two or three smaller rooms. Installing a partition wall at renovation reduces the cost of creating these additional rooms. This flexible design feature is quite common in many houses.

If money is available, the water system may be remodeled after 10 years. As you raise your children, shelves will be demanded in storage. It would be practical to apply for this tax credit by making a good combination of a two-way kitchen, storage shelves, and partition walls.

For reference, other targets are as follows. It is not very easy to use. For example, it includes “replacement of cushion flooring.” But would you bother to hire a contractor to do this? If it were me, I would do it myself. This is because there is a high possibility that the floor will become unnecessary once the child-rearing period is over. Then, it needs to be removed. If you are going to remove it, it should be easy to install and easy to remove.

I don’t mind the possibility of a tax cut, but I wonder if the people who created this program were genuinely committed to child-rearing.

Applicable Conditions

The conditions for receiving this tax break are as follows

Procedures for receiving tax breaks

The procedure to receive the tax reduction is as follows

In Summary.

For example, if you spend 500,000 yen on a face-to-face kitchen, your income tax will be reduced by approximately 30,000 yen, considering that you will reduce the taxable portion by 20%. You can make your remodeling more affordable by considering tax reductions based on this type of remodeling work.

Thank you for reading to the end.