Tax Benefits of Home Ownership and more

Tax Benefits of Home Ownership and more.  Early-Group

When it comes to owning a home, there are several benefits that tax payers may take advantage of when filing their itemized return. Here are just a few to consider when preparing your taxes:

  • When purchasing a home, some closing costs may be deductible. Discount points and origination fees are tax deductible to the buyer. If these apply to your mortgage.
  • If you took out a loan to purchase your home, the mortgage interest is typically deductible in the year in which it was paid. This adds up quickly in most federal tax brackets. Your deduction may be limited if certain circumstances apply in higher tax brackets, or if you took out a mortgage for reasons other than to buy, build or improve your home.
  • Real estate property taxes also provide a tax benefit. In the year you purchase the home, you are entitled to deduct the real estate taxes paid on your settlement statement either to an escrow account or directly to the taxing authority. You may continue to deduct property taxes annually during your home ownership.
  • Mortgage Insurance Premiums (MIP) or Private Mortgage Insurance (PMI) may also be deductible when your down-payment is less than 20 percent. Several changes took effect on June 3, 2013 regarding cancellation and increases to the annual MIP, so it is best to consult your accountant or tax preparer to ensure you accurately claim any deductions
  • Do you work from home? If you have a home office that you use only for business, you may have a deduction for a portion of some items such as mortgage, insurance, utilities or other expenses relative to the office space. There are many considerations when deducting home office expenses, and it may or may not be a benefit to you based on your occupation and overall business use.
  • When selling your home, there are potential tax deductions as well as possible implications to consider. Some closing costs may be deductible including and not limited to real estate commissions, title insurance, legal fees, and surveys. Capital gains or losses may apply, and your tax expert can advise you on determining your basis and adjustments.

Some online resources that may be helpful regarding other home ownerships tax benefits include the Internal Revenue Service or National Association of Realtor (NAR).

A recent item to note regarding married tax filings… A new federal ruling now recognizes married same-sex couples just as their heterosexual counterparts for federal tax purposes regardless where they ultimately live. The Supreme Court ruled that married same-sex couples will be treated as married for federal tax purposes, including income as well as gift and estate taxes, but this ruling does not apply to registered domestic partnerships/civil unions. This covers couples who marry in one state and move to another that may not recognize their union. As a result, lawfully married same-sex couples no longer have to declare themselves unmarried on federal income tax returns, and spouses will not have to pay tax on health insurance benefits received through a spouse – an average savings of $1,000 tax per year for same-sex couples. Changes could be especially significant on estate taxes, where spouses benefit from tax advantages. For more information, the Wall Street Journal published a review.

Disclaimer: The links to articles and resources here are only to be used for informational purposes. Tax payers should always seek professional advice on financial and legal matters from a tax preparer, accountant, attorney or other legal counsel.

How To Bring More Natural Light Into Your Home

How To Bring More Natural Light Into Your Home.  One of the biggest improvements that you can make to your home is to bring in more natural light.  Sunlight is a powerful mood enhancer and a home design that brings in a lot of natural light will automatically look and feel much more pleasant. Not only will it boost your mood, bringing in natural light will also increase the value of your home.

So how can you shed some light on your home’s interior?  Here are a few ways:

Add More Reflective Surfaces

Whenever you add a light and reflective surface to your home, you increase the number of times that daylight bounces around inside the room.  Try painting your ceilings and walls with light or off-white colours. Matte finishes are actually better than glossy surfaces, as they reflect light in all directions at once. Add some metal accents and some mirrors to the space, which will also reflect the light.

Move Your Furniture Around

Do you have furniture that is blocking natural light from coming in? Move your furniture away from the windows so that it will not get in the way of the sunlight streaming into your home.

Add A Glass Door

Is there anywhere in your home where you can exchange a solid door for one with glass in its design? This will allow the light to flow through the doorway and increase the feeling of brightness in your home.  There are plenty of glass doors with superb security features, so they will be just as safe as any other door. Also, if you have a yard or a patio to look out on, adding sliding glass doors will be a great way to let the light in and enjoy the view.

Expand Your Windows

Is it possible to increase the size of any of your windows? If yes, the windows on the south side of the house, will bring a significant amount of sunshine into the home.

Add A Skylight

Adding skylights to your home will bring a lot of natural light into the interior. Also, they are much more private than windows because anyone passing by will not be able to see through them. They also add overhead lighting, so that you will not need to use electricity during daylight hours.

These are just a few ways that you can let the sunshine in and bring more natural light into your Colorado home.  If you have any other home questions, please contact your trusted real estate professional at the Early-Group today.

Creative Ways To Recycle Everyday Household Items

The Early-Group Gives You…Creative Ways To Recycle Everyday Household Items.

Every week the trash truck comes to pick up our garbage and unwanted items, which are promptly taken to landfills. Instead of filling landfills and just buying new items to stuff our homes, we can help the earth and recycle everyday household items.  Below are a few fun and creative ideas for recycling things around your home that you might be ready to trash.

Coffee Table Into Bench

If you just purchased a new coffee table, don’t give away the old one — repurpose it. Find a space in your home where you could use some additional seating, like at the end of your bed or in the entryway.  Push it up against the wall so that any drawers and shelves are facing out. Then add some cushions and pillow. Tada; a bench!

Copper Piping Into Bathroom Hardware

Whether you’re going for a modern industrial look or a French country theme, old copper piping can add an attractive and interesting conversation piece to your restroom. Utilize a U-shaped piece of piping as a toilet paper holder and long pieces of pipe as towel racks. Polish the copper and then seal it with spray lacquer so that it keeps its sheen.

Light Bulbs Into Decorations

Recycle filament light bulbs with a fun little craft project for your children. Grab paint, twine, glitter and glue. You can make flower pots and hang them in the yard as a simple green accent. Use the twine to create loops for hanging.

Pillowcase Into Shopping Bag

Take an old or vintage pillowcase, lay it flat and cut the top corners off of the open end. You’ll want to cut the corners off in a half-C shape so that that there is only about a two-inch strip left in the middle at the top. Sew that two-inch strip together and you’ve got your handle. This reusable shopping bag rolls up tight and is easy to wash.

Drawer Into Dog Bed

The size of your animal will dictate the size of drawer you should repurpose. A cat might like a kitchen drawer while a bigger dog would use a large dresser drawer. Strip the wood off the drawer and repaint. Remove the hardware. Maybe stencil your pet’s name on the front of the drawer. Then create a mattress using foam, batting and a soft and durable material.

Before getting rid of that broken side table or trashing those carry-out chopsticks, take a second look and tap into your creative side to see if you might be able to recycle and give them a second life.

Marijuana is Starting to Intersect with Real Estate

You don’t think of the changing status of marijuana in many states as having a real estate impact but it does. In the states where medical marijuana is decriminalized (and in Washington and Colorado, where it’s decriminalized even for non-medical use), landlords and their rental agents have a disclosure issue on their hands. The landlord has to decide whether or not the rental property accommodates marijuana use, and if so, the rental agent has to be sure to adequately disclose the policy to prospective tenants. That’s just one of the issues stemming from the changing legality of this controlled substance.

The marijuana issue is one of several trending legal issues you’ll be hearing about more in the months ahead. Fracking, which involves extracting gas from shale rock, raises contractual issues: do the rights to the gas leases convey with the property in a sale? The answer is, it depends on what you negotiate. So, agents need to be up on the contractual issues that Fracking raise and also has to be able to manage buyers’ and sellers’ expectations about who gets the rights to the gas.

Our goal is to make you aware of these twists so you can have a better idea of what to do if you find yourself dealing with one of the issues this year.  Please call Terry Robinson & The Early-Group @303.748.3838 for more info.

by Robert Freedman

7 Simple Steps To Finish Your Basement This Holiday Weekend

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Not only does the Labor Day weekend signal a little time off work, but it also indicates a close to the summer season, which means it’s time to get ready for colder weather.  So get in the spirit of the long weekend and put the labor of love into your home by creating a cozy hideaway that your family can retreat to once the outdoors become too chilly.

One of the best places to create this snug space is to mimic hibernating animals and go under ground — to the basement.Whether your lowest level needs a facelift or is completely unfinished, Labor Day weekend is the perfect time to make a game plan and get started on remodeling your basement.

Step 1 – Obtain A Permit

Before you can just slap up insulation and drywall, you need to make sure your basement is even fit to dwell in.  Check with your city to ensure there aren’t any permits you need to obtain and that the space is up to code. If you don’t do it right, then this update could haunt you when it comes time to sell.

Step 2 – Get The Air Flowing

You’ll want this space to be warm in winter and cool in the summer. Contact a contractor to see if getting air to this lower level will be as easy as tapping into your current HVAC system and whether or not your existing appliance can handle the extra space.

Step 3 – Design And Frame

Now comes the fun part. Decide what you want down there! A bedroom or two, a man cave, or TV room; a blank slate provides all sorts of exciting options. Once you’ve got a plan, start framing it out.

Step 4 – Add Emergency Exits

This underground level needs exit points that go directly outside. So, install a back door or windows that someone could fit through in case of emergency. If there are bedrooms in the design, they also each need their own exit point.

Step 5 – Insulate And Drywall

While the ground surrounding your home provides some insulation, you’ll want to properly insulate around the perimeter and in between rooms to provide a noise barrier. Then put up the drywall.

Step 6 – Install Flooring

Pick out your flooring, such as wood, tile, carpet or vinyl. It mostly depends on what type of rooms you’re planning to create. Make sure your floors are level before you lay anything down. It’s especially common to find slanted floors in older homes.

Step 7 – Paint And Decorate

You’re almost finished! Pick out your paint colors, move in your furniture and enjoy your new cozy hideaway. Colder weather will be here before you know it, so use the long Labor Day weekend to get this project started.



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