What are the tax implications of a major remodel?

Hello,
I have a question about adding a standard two car garage and
a master bedroom and bath above the garage.  This addition
would be to the side of the house.

A couple of contractors I've spoke with (not received an
estimate from) say the cost would run about $200K, which to
me seems very high.  Because of this, my wife and I are
contemplating moving due to the cost of adding.

I haven't provided many details, however, does this amount
seem high?  Also, is there a standard price per square foot for
additions in Massachusetts that contractors use?

Thanks for your help.

Bob     

Bob,
I do not have a clue about prices in Massachusetts or
anywhere else in the US. On the other hand, yes,
$200,000 seems to be out of whack to me also.
I think you are going about planning your remodel
backwards.

If you read any one of my books you will know that I
stress that there is no "price per square foot" for any
remodel. It is a myth.

I also tell you that it makes no sense to talk to a
contractor until you have done your homework.

You are talking about spending a large sum of money.
If the price was half of that suggested,$100,000, that still
is a very large sum to spend without doing a lot of
homework before you get started.

At the risk of trying to sound like I am only interested in
selling books please consider buying "Confessions of a
Home Remodeling Contractor" for $29. I will cheerfully
refund your money if you don't think it is worth the cost.
If you plan as I suggest, you will find the lowest price
available to build your project.

Also, go to my website & try reading my blog (the first
entry at the bottom of the page) & in the "letters" page
you will find a letter about "price per square foot"). Like
most things in life you have to put in some effort into
your remodel before it can be successful.

Regards,
Bill Harbrecht