Some homeowners ask to pay their projects in cash to save on the tax portion of the invoice. However, non declared cash payments carry a lot of risks for the homeowner in addition to being illegal.
Indeed, when a home renovation project is paid via non declared cash payments, the homeowner is exposed to the risk of having an uninsured home renovation project. In the event of an accident on the site or faulty workmanship or a dispute with the general contractor and/or subcontractors, the homeowner greatly reduces the chances of being in a position to receive compensation because no declared invoice has been issued & paid. In this scenario, taking legal action against a general contractor is unlikely to succeed, and moreover a court will likely highlight the homeowner is also at fault for initially avoiding paying taxes on the home renovation project costs.
In addition, it will be difficult for the homeowner to prove that some renovations were done at the time of the home sale (since there is no official receipt of the home renovations payments), which will penalize the price appreciation of the property.
Undeclared cash payments are risky and can penalize you in regards to the quality assurance, protection against damages, as well as during the eventual home sale.button
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