Categories: Consumer Tips

Preserve Your Mortgage Interest Deduction

by StacyOgara
Published on: May 25, 2011
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Is preserving your ability to deduct mortgage interest from your taxes worth two minutes of your time? If your answer is yes, keep reading. 

In just two minutes, you can tell your representative in Washington that you support the Mortgage Interest Deduction (MID) and encourage them to oppose any effort to change the MID. It’s as simple as 1,2,3:

  1. Click on this link to go to our legislative action center. Then, simply type in your name, address and zip code.
  2. Using our legislative action center, you will then be able to email your respective representatives to ask them to support House Resolution 25 being sponsored by Rep. Gary Miller (R-CA) and Rep. Greg Meeks (D-NY).  Once you hit the send button, our system does the rest.
  3. Share this call to action on Facebook —start a conversation with your friends and others.
By taking these three simple steps, you can help us send the message to Congress that we believe the Mortgage Interest Deduction is more important to homeowners in today’s economy than ever before.
Thank you for taking the time to help raise awareness about this issue with Congress.

Home Maintenance Quiz

by StacyOgara
Published on: April 12, 2011
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Posted by:  NAHB

Date:  April 12, 2010

It’s the weekend and you have a whole list of household chores to do. Oh, we know you’d rather be golfing or playing tennis or watching TV, but keeping your home in good shape is important. Your home may be the biggest investment you will ever make. Taking good care of it with regular maintenance is necessary to maintain its value and ensure it will provide a comfortable, safe shelter for you and your family for a long time.

Here is a home maintenance quiz that will test your maintenance knowledge. While this quiz does not address every home maintenance project, it does provide helpful tips and reminders for chores you may have overlooked.

1. How often do forced-air furnace filters need to be changed?
At least every three months during the heating season.

2. What part of the faucet usually needs to be replaced when you have a water leak?
The washer.

3. Should you run hot or cold water through your garbage disposal?
Cold water.

4. How often should the moving parts of garage doors be oiled?
Every three months.

5. What tools can you use to unclog your drains?
A plunger and a plumber’s snake.

6. What tool can be used to unclog a toilet?
Coil spring-steel auger.

7. What faucet part needs to be cleaned every three to four months?
Aerator—the screen inside the end of the faucet.

8. What can you use for traction on icy sidewalks, steps and driveways?
Cat litter or sand—never use salt because it damages the pavement.

9. Where should the fire in your fireplace be built?
On the andirons or grate, never on the fireplace floor.

10. What will prevent soot and add color to the fire in your fireplace?
Throw in a handful of salt.

11. Where should your firewood be stored?
Outside, away from your house and not directly on the ground.

12. What helps keep unpainted concrete floors easy to keep clean?
Concrete sealer.

13. What should you use to clean unpainted concrete floors?
A solution of 4 to 6 tablespoons of washing soda in a gallon of hot water. Mix scouring powder to the solution for tough jobs.

14. When can you clean hardwood floors with water?
When the floors have a polyurethane finish.

15. Do hardwood floors need to be waxed?
Hardwood floors that do not have a polyurethane finish probably will need to be waxed periodically. Use liquid or paste “spirit” wax.

16. What is the best polish for vinyl floors?
Water emulsion wax.

17. When is basement condensation at its maximum?
In new homes because gallons of water went into the concrete of basement walls.

18. Why should noisy water pipes be fixed promptly?
The condition that causes noisy pipes may be accompanied by vibration that can cause fittings to loosen and leak.

19. Why should frozen pipes be thawed slowly?
Frozen pipes should be thawed slowly to prevent the formation of steam, which could  cause the pipe to burst.

20. How often should your roof be inspected?
A qualified roofer should inspect your roof every three years.

21. What should be regularly checked on your security system?
The alarms and circuit breakers should be checked to make sure they are in working order and the sensors should be inspected one by one.

22. To ensure your safety, what household equipment uses batteries that must be checked regularly to make sure they are operable?
Smoke and carbon monoxide detectors.

23. What do you use to fill nail holes and cracks in plaster walls and gypsum wallboard?
Spackling.

24. What is the white powdery substance that develops on masonry walls?
Efflorescence sometimes appears on masonry walls. It is crystallized soluble salts that can be removed by scrubbing with water and a stiff brush.

25. At what temperature should your water heater be set?
120 degrees Fahrenheit

26. How often do skylights need to be inspected?
Skylights should be inspected each time your roof is inspected so leaks don’t develop from cracks and interruptions around its seals, caulking and flashings.

27. What is a simple solution you can use to wash extremely dirty exterior windows?
A solution of equal parts vinegar and water or 3 tablespoons of denatured alcohol per quart of warm water. Use a piece of crumpled newspaper to wash the glass to avoid lint left behind by papertowls.

28. What can you use to help a window slide easily?
Rub the channel with a piece of paraffin.

29. What should you look for when you inspect your siding yearly?
Determine if wood-sided homes need to be repainted; check to see if the caulking around the windows and doors has split and cracked, and replace the caulk; clean the mildew; trim shrubbery away so it does not touch the siding.

Homeownership Can Bring Big Savings at Tax Time

by Philip Eaton
Published on: March 2, 2011
Categories: Consumer Tips
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As the April 18 federal income tax filing deadline approaches, millions of Americans are sitting down and sorting through dozens of forms to determine how much money they owe Uncle Sam – or, how much of a refund they will get this year. One of those forms, the Mortgage Interest Statement Form 1098, can mean big savings for home owners at tax time.

Form 1098, which home owners receive from their lenders, shows the total amount of home mortgage interest paid during the year. Home owners who itemize their federal income tax deductions can deduct 100 percent of their mortgage interest payments on a first or second home for up to $1 million of mortgage debt. They can also deduct the interest paid on up to $100,000 of home equity loans.

For most home owners, this means they can deduct ALL of the mortgage interest they’ve paid on their home each year.

The ability to deduct home mortgage and home equity loan interest isn’t the only tax benefit for home owners.

The three most important sources of tax savings for home owners are:

• Deductions for mortgage interest
• Deductions for real estate taxes
• The capital gains exclusion for the sale of a principal residence

Home owners are also able to deduct the state and local real estate taxes they pay each year on an owner-occupied home.

When it is time to sell a home, in many cases home owners don’t have to pay capital gains tax on the profit from the sale. Under present law, married couples who have owned and occupied their principal residence for at least two of the past five years do not have to pay any taxes on the first $500,000 in profits from the sale of their home. Single filers earn up to $250,000 tax free.

Another deduction home owners may be able to take is for mortgage insurance premiums. Generally, people who purchase a home without putting 20 percent down have to buy mortgage insurance, and those premiums can also be deducted from taxable income.

Even home owners who don’t use the home as their principal residence and rent it out may be able enjoy some tax benefits, including interest and depreciation deductions.

Buying a home offers tax savings that can add up to tens of thousands of dollars over several years. Home owners rely on the mortgage interest deduction each year to help offset the costs of homeownership and prospective buyers take the deduction into consideration when choosing homeownership over renting.

But the mortgage interest deduction, which has been included in the tax code for about 100 years, is in danger. A national deficit commission has proposed reducing or eliminating the deduction as part of a restructuring of the tax code.

Find out more about the threat to the mortgage interest deduction, and read “The Tax Benefits of Homeownership,” a study from economists at the National Association of Home Builders that provides specific examples of savings for a variety of income levels and ownership situations, at www.SaveMyMortgageInterestDeduction.com.

What five projects add the most value to a home?

by Philip Eaton
Published on: December 7, 2009
Categories: Consumer Tips
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Despite the recent slide in home values across the country, remodeling projects continue to be considered among the safest places to invest during these uncertain economic times.  Statistics from the National Association of Realtors show the while home prices have fallen an average of 7% nationally, the value of investment in home remodeling projects has declined only 3.86% according to Remodeling Magazine’s 2008-2009 Cost vs. Value Report.

Cost versus value studies are created annually to review all types of remodeling projects and identify those that offer the most return on investment.  In recent years, the top three projects that offer the highest returns have remained the same.

At the top of the list is replacing siding on the home with one of the many upscale fiber cement products on the market.  The second best home improvement investment is the installation of a midrange wood deck.   The third highest return is a midrange siding replacement project with a vinyl siding product.  Fourth on the list is siding replacement using the upscale foam-backed vinyl.  And rounding out the list at number five is a midrange minor kitchen remodel.

What is the common theme amongst the first four projects on the “best investment” list?  If your project adds curb appeal, it will always result in high returns.

Dig a bit deeper into the list and you will find the next category of projects that yield the highest returns focus on window replacements of various types.  Why?  Like siding, these are often projects of necessity.  Also, consumers have a much greater awareness of energy efficiency and with the rising cost of energy, homeowners are aware that window projects are often essential to controlling energy costs.

Not surprisingly, when it comes to traditional remodeling projects, kitchens and baths are the smartest place to spend your money.  This is where the consumers still expect the money to be spent when looking for a home.  In fact, kitchens are the only interior project type to be found in the top ten remodeling returns on investment.

The message to consumers – putting money into your home is still a very good investment – just be wise with your selections to ensure you do not turn off potential buyers and remember that projects focusing on curb appeal currently result in your best investment.

Geoff Horen is President of The Indianapolis Remodelors Council and the Chief Executive Officer of The Lifestyle Group, an award-winning residential remodeling company that services Central Indiana homeowners.  He can be contacted at 317-352-9022 or Geoff@lifestylegroup.com.

DIY Mart starts today!

You can find all sorts of new or used odd lot building products at the sale – cabinets, hardware, plumbing, roofing, lime green toilet taken out of a recent remodel, you name it!

The sale will be held Friday, May 29 from Noon to 6 p.m. and Saturday, May 30 from 9 a.m. to 2 p.m. at the Habitat for Humanity Re-Store, 1011 E. 22nd St. The DIY Mart is in the rear yard so simply walk straight through the Habitat Re-store.

Cash, Mastercard or VISA only, no checks. Plan to haul away your treasures that day.

Proceeds from the sale, which will be open to the public, will benefit the BAGI Remodelors Council. Items not sold during those two days will be donated to the Habitat for Humanity Re-Store.

New Home Tour at The Village of WestClay starts April 18

Great new for everyone who loves home tours – here is the first of four shows planned for this year – RD

The Builders Association of Greater Indianapolis and Brenwick Development announce the New Home Tour taking place at The Village of WestClay April 18 through May 3.

This single-location home tour features nine partially-furnished custom homes priced between $286,000 and $1.5 million. The Village of WestClay, a traditional neighborhood development, is the perfect showcase for the wide variety of architectural styles on the tour. Ranging from Craftsman to French Second Empire, these homes fit a variety of lifestyles from maintenance free spaces to spacious floorplans for growing families.

Visitors will discover distinctive home design elements such as private courtyards and other outdoor living trends while also learning about the latest in home energy saving products and building techniques.

The New Home Tour includes new construction from nine association builders: Beazer Homes, Brookshire Custom Homes, The Estridge Cos., DB Klain Builders LLC, Homes by McKenzie, Inc., Shaffer Enterprises of IN, Inc., Homes by Kurt Schmadeke, Woodall Construction Services Inc., and Will Wright Building Corp. The builders themselves will be on hand during the tour to discuss their designs and answer questions.

New Home Tour hours are as follows: Monday through Friday – 4 p.m. to 9 p.m.; Saturday and Sunday – noon to 6 p.m. Admission to New Home Tour is $12 per adult, $6 for children 12 to 5, children 4 and under are free. Tickets are available at The Village of WestClay during show hours. The ticket booth closes one hour before the homes close. 

A portion of the proceeds from New Home Tour benefits the Ronald McDonald House of Indiana.

For more information about New Home Tour at The Village of WestClay or to purchase a ticket online, visit www.IndyNewHomeTour.com.

Act Soon to Qualify for $8,000 Home Buyer Tax Credit

by Shari Held

If you’re considering buying a home you couldn’t have picked a better time. There are great buys to be had, and the latest Federal Housing Tax Credit sweetens the deal even more for qualified first-time homeowners such as John and Romy Kohler.

The Kohlers recently moved to Bloomington so Romy could attend law school. “We were trying to find an apartment in the Bloomington area, but they are so expensive here, we started thinking that we should buy a home,” John said. He investigated potential incentives to home ownership and discovered that the new Federal Housing Tax Credit did not have to be repaid, unlike former incentives that were essentially interest-free loans. “That impacted our decision considerably,” he said.

The Kohlers visited the Highlands, a Beazer community, and ended up signing papers that day. “It is very encouraging to know that there are incentives for people who are still interested in living out their dreams,” he said. “This is a dream come true for us. We are really, really excited.”

A tax credit equal to 10 percent of the home’s purchase price (up to a maximum of $8,000) is now available for first-time buyers purchasing their principal residence on or after January 1, 2009 and before December 1, 2009. “First-time buyers” are buyers who have not owned a principal residence for three years prior to the 2009 purchase date—the date of the closing when the homeowner receives the title to the property. For a married couple, neither partner can have owned a principal residence for three years prior to the purchase date.

Getting the full $8,000 tax credit also depends on income. Single taxpayers with a modified adjusted gross income (MAGI) of up to $75,000 and married taxpayers with MAGIs of up to $150,000 qualify for the full tax refund, while taxpayers with a MAGI of more than $95,000 (single) or $170,000 (married) will not receive a tax credit. The rate of return is modified for homeowners falling within those income brackets. The only “catch” is that the homeowners must use the home as their principal residence for a minimum of three years or risk paying the credit back—some exceptions do apply, however.

Matt and Rachael Cadick had already decided to build a new home on Indy’s south side, so while the tax credit didn’t influence their decision to buy, it still had a significant impact on them. “It was perfect timing,” Matt Cadick said. “My wife and I are just about ready to celebrate our first year of marriage, so it was a very good added bonus to make things easier on us and take a lot of pressure off us.” The Cadicks got paperwork indicating their closing date and the price of the home they are purchasing from Beazer Homes and are applying for the credit now, even though their closing date won’t be until later this year. They plan to use the money from the tax credit to build a fence around their new home and pay off credit card debt.

As the Cadicks found out, it’s very easy to participate in the tax credit program. It’s simply a matter of completing IRS Form 5405 to determine the amount of the credit and claiming it on Line 69 of the 1040 return. No other applications or forms and no pre-approvals are required.

The date of first occupancy or the settlement date for newly-constructed homes must be on or after January 1, 2009 and before December 1, 2009, so if you’re considering purchasing a home, there’s still time.

$8000 Tax Credit for First-Time Homebuyers Available Now

Credit Offers Up to $8,000 to Qualifying Taxpayers Now

Washington, DC – In an ongoing effort to deliver on swift implementation of the Obama Administration’s recovery, stability and affordability plans, the U.S. Department of the Treasury touted today the availability of an expanded tax break for first-time homebuyers – a provision under the American Recovery and Reinvestment Act of 2009 that will make up to $8,000 available now to qualifying taxpayers who buy homes this year. 

First-time home buyers represent a significant portion of existing single-family home sales.  In 2008, nearly one out of every two homebuyers were buying for the first time, and the expansion in the first-time homebuyer credit will make it easier for first-time home buyers to enter the housing market this year.   

“The expansion of the first-time home buyer tax break as part of the President’s recovery agenda gives money to taxpayers when they need it most, while also targeting an important group of buyers,” said Treasury Secretary Tim Geithner. “We view our economic recovery plan, our financial stability plan and now this homeowner affordability plan as three legs of the same stool – an integrated whole that represents our immediate response to the current crisis. We remain committed to swift, efficient and effective implementation of all of these components.” 

The announcement comes on the heels of the first Recovery Plan Implementation meeting led by Vice President Joe Biden at the White House this morning; Secretary Geithner was among several Cabinet secretaries to attend and offer updates on implementation efforts in progress at Treasury and its bureaus. Vice President Biden is overseeing the Administration’s implementation of the Recovery Act’s provisions. 

The Internal Revenue Service (IRS) has posted on IRS.gov a revised version of Form 5405, First-Time Homebuyer Credit to incorporate provisions from the American Recovery and Reinvestment Act.  Under the new law, qualifying taxpayers who buy a home this year before December 1 can claim up to $8,000, or $4,000 for married individuals filing separately, on either their 2008 or 2009 tax returns.  Unlike the prior first-time homebuyer credit, this is money individuals do not need to pay back.  

To view the form and additional information on who can and cannot claim the credit, income limitations and repayment of the credit, please visit IRS.gov or go online to www.FederalHousingTaxCredit.com

Energy Efficient Appliance Rebates end April 30

by Philip Eaton
Published on: February 25, 2009
Categories: Consumer Tips
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Lt. Governor Becky Skillman has announced the availability of rebates that will help Hoosiers offset the cost of heating their homes, washing clothes or even taking a shower.  The Indiana Residential Energy Efficiency Rebate program will provide cash rebates for the purchase and installation of energy efficient furnaces, boilers and water heaters in existing Indiana homes.
This rebate program is all about Hoosiers making a difference at home,” said Lt. Governor Becky Skillman.  “Installing a more energy efficient furnace or water heater means homeowners can reduce the amount of energy they use to stay warm or have hot water, and save money on their utility bill at the same time.”
A total of $250,000 is available for the rebate program, which is being administered by the Indiana Office of Energy Development.  Funding for the program was provided by the U.S. Department of Energy.
The rebates, which range from $75 to $400, are available for existing single family homes that are the primary residence of the applicants.  Applicants must have a household income of $75,000 or less to be eligible for the rebate program. The rebate application must be approved before any work is done.  Applications must be received by April 30, 2009 to be considered. The guidelines for the rebate program are available for download at www.energy.IN.gov.

Forbes names Indy one of 25 strongest housing markets

by Philip Eaton
Published on: January 19, 2009
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To compile this list, they asked Moody’s Economy.com to look at metro areas with populations over 500,000 to find those closest to recovery. The firm prepared forecasts through 2011 and compared them to prices in the second quarter of 2008, which are the latest figures available, to calculate how far prices will likely fall before reaching bottom. The percent figures are price drops between second quarter 2008 and the projected bottom.

Indianapolis Metro
Population: 1,795,100
Bottom expected: late 2010
Forecast price change to bottom: -3.2%

http://tinyurl.com/8zerdx

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