Question: I am thinking of remodeling my...

Question: I am thinking of remodeling my kitchen for about $35,000. A friend told me that if I do this, the tax assessor will re-evaluate my house to its present value, rather than the taxable value which I am now paying. Is this true?

Answer: No. While you may expect a small tax increase as a result of the home improvement work, the increased taxable value will be less than what you actually spend.

Incidentally, if the new federal tax proposal comes into effect, the interest that you pay on a home-improvement loan on your primary residence will still be deductible.

Q: The kids are growing up and I would like to do some remodeling to suit our changing needs. In a few years though, I would like to sell the house. Do you feel I can recapture my extensive costs?

A: Probably, yes. It depends upon the neighborhood and the amount of remodeling. If you are going to do $50,000 worth of remodeling on a $120,000 home, your chances of recovery will be slim, as you will have the best house in the neighborhood. Generally speaking, if you add about 20% to the present value of your home in remodeling costs, it should be recoverable.

Recovery is usually 100% or greater in the adding of a fireplace, a new bathroom, solar greenhouses, and in kitchen remodeling. The worst investments are in swimming pools.

You should also consider inflation, which, at 5% a year, over a five-year period, would forgive any loss that you might receive in certain types of home improvement. The bottom line is the quality of life, and if you feel that your family would enjoy a new swimming pool, then by all means, install one.

Fontaine is president of the Western Regional Master Builders Assn. and a director of the American Building Contractors Assn. He will answer questions concerning home improvements. Phone 213/653-4084 or write him at 6404 Wilshire Blvd., Suite 850, Los Angeles 90048-5510.