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If you bought a new home in 2015, here are some things to think about as you get ready for tax season:

Mortgage Interest

One of the biggest perks of owning your own home is the benefit of deducting your mortgage interest. You can deduct home mortgage interest if your file Form 1040 and itemize your deductions on Schedule A (Form 1040). It is important to note that the mortgage must be a secured debt — that is, for example, that your home is the security for the mortgage — and that you have an ownership interest. Both you, and your lender, must intend that you will repay the loan.

The amount you can deduct depends upon the date and amount of the mortgage, and how you used the mortgage proceeds.

If this is your first home mortgage, you may want to seek the advice of a tax professional to make certain you get the complete deduction due to you and that your set up the original tax basis correctly.

Points

Points are the prepaid interest you offered at your home’s closing in order to get a better interest rate on your loan. When the points you paid meet certain criteria, they may be deductible on your income taxes. This is another area to discuss with your tax professional, since certain unusual transactions are not allowed.

PMI

Private mortgage insurance (PMI) is insurance meant to protect your lender in case of default. Some mortgages require PMI as a condition of the mortgage for a first-time buyer or for a smaller down payment. If you paid PMI, you MAY be able to claim a deduction if you itemize, and meet certain requirements. Do not assume that your PMI is deductible, however, since Congress determines from year to year whether or not PMI deductions are allowable.

Real Estate Taxes

Your state, county or city governments typically charge what is known as an ad valorem tax based on the value of your home. Many lenders add the potential amount of your ad valorem taxes to your payment amount and then place that amount in an escrow account. When your property taxes come due at the end of the year, your lender makes the payment for you. This should be detailed on your monthly statements. If you pay property taxes, you often can deduct these from your income taxes on your itemized Schedule A.

As you prepare your tax documents with the Metric Accountants, keep track of your other potential deductions — for charitable donations, as an example — because it is the total of all of these that works together to give you the biggest deduction on your taxes, since it has to be more than the standard deduction.

If you sold a home to buy a new home and made more on the sale than the cost basis of the new home you may owe taxes on the profit. There are special circumstances that can keep you from owing on these gains, so this is an area to discuss with your tax professional as well. Visit https://landmark24.com/moveinnow/ to check what the requirements are when you buy and move in.

It seemed so perfect on the showroom floor…

Then you get it home and no matter how you try it, you just can’t make that furniture fit in the space of your new home!

What to do? Plan ahead (duh!) or work a plan with what you already have.

Here’s how to get started:

• Measure each room. Don’t just measure once—measure twice. Write it down.
• Measure the spaces from the corners to the windows and doors. The great Window Experts in dublin reminds to write it down.
• Measure the width of each window and door. Write it down.
• Measure the height of the walls, windows and doors. Write it down. (You see a theme here, right?)
• Sketch out a simple floor plan with your measurements. You will use your simple floor plan to create a more sophisticated one using a free online floor plan tool like this one at Room Sketcher or any of the tools located Room Sketcher and several other floor plan tools allow you to design in two dimensions and then view in 3d interior visualizations to get a better idea how it will look. A 3d animation services like FUSE has experts in 3D design, photorealism, and animation, who can be the perfect virtual partner to support you anywhere, anytime. They can bring your product to life virtually with photoreal 3D design.

It’s very important to include windows and doors in your plans, make sure to check out the price of double glazed windows which are very resistant. And don’t forget to locate heating and air conditioning vents and returns, power outlets, light switches and cable and Internet connections.

If you already have furniture that you are trying to fit, measure its length, width and height and any clearance it might need—such as the footrest to a recliner or the doors to a television cabinet. This is especially true if parts of the furniture extend even slightly beyond the footprint. Choose the nearest approximation from the floor plan tools to include in your layout.

Modernise Furniture Us is a leading provider of contemporary home decor for your indoor and outdoor spaces. Modernise.us is a Houston based business that is a global leader in unique home designs.

When you’re done, you’ll be able to rearrange your furniture virtually, without breaking your back, to see if it will fit.

Old School:

If you find the online tools difficult, go old school with a diorama. Create rooms from cardboard boxes and cut in doors and windows. Create furniture to scale from pieces of cardboard or stiff paper. You can rearrange these as many times as you need to quickly see if your furniture will fit.

Or, grab some grid paper and a ruler and draw out your rooms and then furniture from the “top view.” While this method only offers a 2D view, it is quick and easy. If you want specific instructions, check out this guide from Decorating Studio’s archives.

Getting Help:

If none of these ways seems helpful to you, make a trip to your favorite furniture store (with your measurements in hand) and get a room designer to help you. Along the way, they’ll be able to show you which wicker furniture or handcrafted amish furniture pieces in their showroom will work for your situation.

Eeeeek! Rates are going up … or are they?

Last week, for the first time after years of historically low rates, the Federal Reserve decided to raise short-term interest rates. For homebuyers, any rate hike often is seen a negative, but here are some reasons why this rate increase is good.

First of all, understand that the interest rate hike was NOT on mortgages. The Federal Reserve does not directly control interest rates on mortgages. What the Fed does control is the overall money supply. By raising interest rates at the Fed level on the “Federal Discount Rate,” they have begun a trickle-down effect that will begin to tighten the money supply. This makes it more expensive for commercial banks to borrow money and so decreases the amount of money available for short-term borrowing.

1. It’s a good sign

For the Federal Reserve to take such a bold step after years of low rates means that the Federal Reserve Board believes that the economy has improved enough that it can withstand an increase. Because the Federal Reserve has a mandate to achieve maximum employment rates AND keep prices relatively stable (curb inflation), raising rates means that employment levels have improved. An improved economy is a good sign that homebuyers will be able to afford to buy a home.

2. It does not directly influence mortgage rates

The discount rate does NOT directly influence mortgages. Mortgage-backed securities (bonds made up of pools of mortgages) track with the percentage yield on 10-Year U.S. Treasury bonds. Regular mortgages follow the mortgage-backed securities. While some mortgage rates increased slightly after the announcement, the bond markets have not settled on rate hikes, so the could end up either higher or lower once it becomes apparent how the economy reacts to the Federal Discount Rate increase.

3. It should be a slow increase

Because of the dual mandates of the Federal Reserve (low unemployment and stable pricing), the increases should be gradual rather than quickly increasing hikes because the Fed needs to make certain the economy is keeping pace with the increases. While it seems counter-intuitive, the Fed would like to see inflation rise slightly and this move is one way they can affect inflation in a gradual manner.

4. It might be good for your bottom line

Yes, your mortgage rates might increase a bit, but so will the interest on your savings accounts and securities. You’ll begin to see higher offerings on CDs and other interest-based income streams.

5. It’s still historically low

The current generation of homebuyers has not experienced high rates. Most millennials or Generation Xers do not remember when mortgage interest rates were in double digits and may fear the worst, but the changes in mortgage interest rates, at least for the near term, won’t increase their payments by more than their designer coffee or energy drink habits.

As always, if you have questions about the housing market, contact your real estate professionals. We stand ready to help you make sound decisions on the home of your dreams.

Compliments of Virtual Results

If you’re entering your retirement years, you may be considering buying a second home in a warmer (or cooler) clime. Perhaps your goal is to escape the winter weather. Or, maybe you want a home nearer to the grandkids.

Whatever your purpose for wanting that second home, here are some things to consider as you make that decision:

Income Tax

Several states do not have state income tax. Creating a second home in one of these states could reduce your tax burden. These include Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee*,Texas, Washington and Wyoming.

*NOTE: While New Hampshire and Tennessee do not require residents to pay income tax on regular wages, they do tax dividend and interest income.

However, it is important to note that different states tax retirement income differently, and others have very specific criteria that identify your responsibility to pay income tax in that state even if you only live there a few months of the year. Before you buy a second home in a different state based on an income tax strategy, speak with a knowledgeable tax advisor. For more information on state income taxes, check here.

Property Tax

Another tax that can wreak havoc on your retirement savings is property tax. Just because a state does not have income tax, it may not be the best place for you to set up your retirement residence. For example, Texas does not have state income tax, but Texas is among the 10 states with the highest property taxes, as is New Hampshire. Even so, your personal tax burden may benefit from shifting your state of residency to one of these states, so again, discuss your specific situation with you tax advisor.

Access

Of course, if access to your grandchildren is of primary concern, you’ll want to move as near to them as possible, so the tax consideration might be low on your list. If not, be sure you have access to the things you do want.

As you age, however, the possibility that you might become ill rises. Make certain that along with access to your family you have access to top-notch, affordable medical services. Investigate local access to care before you buy your second home.

Alternative Income Stream

Some folks buy a second home for possible rental income, planning to move into the home after retirement. If this is in your plans, here are some things to be aware of: Regardless of what you might read or hear about holiday rentals, they don’t always pay for themselves. Most holiday areas have high seasons and low seasons. If you can’t make enough rental income in the high season to cover the entire year, this might not be a good option for you. Even in resort area, inclement weather can take a big bite out of your potential rental income. Additionally, you still have all of the costs of maintenance, upkeep, insurance and repairs to contend with. Of course, with online rental portals like airbnb.com or homeaway.com you might have an easier time finding qualified guests these days. Most experts warn that rental income from holiday rentals rarely covers your entire mortgage though, so don’t plan on that as a motive to buy.

If you’re considering buying a second home for any of these purposes, consulting your local real estate expert is the place to start.

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Plane tickets? Check. When you fly in one of Jettly‘s chartered jet, you will have access to a private terminal or lounge to relax in before you board your flight. These exclusive areas will allow you to prepare for your flight in a quiet and stress-free manner.

Suitcase packed? Check

Wrapped gifts packed? Check

House protected? Oooops!

If you’re planning on traveling for the holidays, don’t leave your home’s protection to chance. Coming home from a holiday trip to find your home has been broken into, or that a pipe has broken in your absence can ruin all those relaxing hours with family and friends.

While this is true for anyone, it is especially important that new homeowners take steps to safeguard their home while out of town.

Here are some of the basics:

Get a little help from your friends: Ask a friend to water plants, check on your house and pick up mail or newspapers.

If you’ve met your neighbors, you should let them know you will be away. Give them you phone number and the date you’ll get back. If you are having a friend check on your home or water plants while you’re away, let your neighbor know that too so they don’t accidently call the police on your friend.

Avoid posting to social media: In a world filled with tweets and posts that go out to the wide world, you can’t be certain that your posts of being away aren’t being viewed and monitored by thieves. Save your pictures to post after you’re back home. The memories will be just as sweet.

Lights, Curtains: All the world’s a stage…

While you’re gone, to make your home not appear empty, you might think about lighting up the rooms in the evening. This does not mean leaving the lights on in all the rooms the whole time. First off, that would seem weird, and secondly, it will give you a higher electric bill. The best course of action is to get timers and connect them to lamps. Have them set to come on and go off in each room as you would normally use that room. For example, from early evening to just prior to bed time in the living areas and in the bedrooms briefly as if you were getting ready for bed. You can find timers at many retail outlets and online for less than $10.

Regarding window coverings, keep them the way you usually do, but move electronics and other costly items out of sight.

Stop the mail: If you have mail or newspapers delivered to your home, suspend delivery while you are gone. The US Postal Service allows you to sign up online for most ZIP codes to hold your mail with the use of a credit card (for a nominal charge to prove identity).

What else should you do? If you have a neighborhood watch or community association, let them know to keep an eye on your place. Make arrangements with services to sweep leaves and snow off your walkways and driveway. Unplug appliances that have LED lights (coffee pots, microwaves, televisions, etc.) so that your electric bill isn’t huge when you get home. Lastly, if there is any chance of freezing weather, leave your furnace set to no lower than 56°F to keep your pipes from freezing. If you aren’t sure how well your pipes are insulated, open the cabinet doors below your sinks to let the warmer air circulate. You should also consider home insulation. You may contact professional foam insulation services for a spray foam insulation.

Now…go have a great holiday trip!

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You’ve been saving for a downpayment and you’re almost there.

Almost!

You just need a little more money in that account and you can make an offer on your starter home. Now, your parents and grandparents want to give you a gift of money toward your new house.

Gifts for downpayments can come from a variety of sources. Mortgage lenders will let you use a cash gift toward a plethora of loan options as well. These include FHA loans, VA loans (which only need a down payment if they exceed the threshold), USDA loans, conventional loans and even jumbo loans. In fact, affording a twenty percent downpayment puts you in position for a conventional loan backed by the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac), potentially saving you money over the life of your loan.

Before you ask Santa for that gift, however, you need to understand how it should be wrapped! If not done properly, you might just end up with a lump of coal in your pocket.

Here’s the skinny of how it works.

When you accept a downpayment gift, you cannot just deposit it into your bank account and co-mingle it with the funds you have there. You need to follow the required process for documenting the gift so that your loan isn’t denied.

1. Write a “gift letter” that notes the following:

• The amount of the gift
• Who gave you the gift and your relationship to the giver
• A note specifying that the gift is REALLY a gift and not just a loan you’ll have to pay back in the future
• The property address you intend to buy
• The signatures of the givers and the recipients
• Don’t add anything extra to your gift letter either. Make it simple and strait forward.
• Write a separate letter for each gift

2. Keep a paper trail:

The gift should be in the form of a check in the exact dollar amount you noted in your letter. (Do not just have the money transferred to your account.)

• Make a photocopy of the check
• With the check in hand, take it to your bank (the same bank your other downpayment money is in) and deposit that check alone (nothing else in the transaction) into the account.
• Make certain you get a receipt

If you receive more than one gift, deposit each one separately and get a separate receipt for it.

When applying for your loan, give copies of the gift letters along with copies of the checks and deposit receipts to the underwriter. Your underwriter will use the letters in the effort to get your loan approved and funded.

One side note: there may be tax implications for both the givers and receivers of financial gifts. Be sure to check with your tax advisor if you have questions or to find out how a gift might affect your situation.

If you have questions about other ways to come up with a downpayment, your real estate professionals can point you in the right direction.

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Flooring is one of the more controversial subjects when it comes to home improvements. There are two firm camps and rarely do they meet in the middle. And when you’re in search of a team of highly skilled professionals who employ cutting-edge equipment and environmentally-friendly cleaning products to guarantee comprehensive and efficient cleaning, then you need not search any further than upholstery cleaning Melbourne. If you’re planning to sell your home, you may think you need to replace the carpet or just clean it with the help from carpet cleaning cincinnati.

While only your local real estate professional can advise you on the best option for your situation, here are some thoughts for consideration:

Hardwood Flooring: Hardwood floors have become central to modern design and many homeowners raised in wall-to-wall carpeting are easily persuaded to exchange their carpet for hardwood. Updating an older look with wood flooring or timber flooring might just be the key to getting your home sold. Before you do, however, make sure you’re doing it for the right reasons.

Visual appeal: There’s no getting around it: Mirage hardwood floors are simply beautiful. Whether you’re into dark cherry or a modern light bamboo, a wood floor can complement most décor and most tastes. A more affordable option for that wood-like appearance is laminate flooring.

Maintenance: For many people, a modern wood floor product is easy to maintain. Usually sweeping or a light dust mop works for most cleaning. Periodically going over your floor with a damp mop using a wood safe product can pick up sticky residue or spills. In addition, they handle a lot of traffic without the “traffic patterns” that carpets pick up. Finally, if your floor gets scratched, you can have it buffed out, re-stained and coated with a clear protective coating.

Special considerations: People that suffer from allergies may find that they have fewer episodes with hardwood over carpet. Since the carpet fibers can collect pollen, animal hair and dander, dust mites and other allergens and irritants, you may find removing the carpet and replacing it with hardwood is an excellent and healthful idea. On Rugs Online you can choose your favorite carpets to redecorate your space.

People looking at your home with an eye to purchase it will find that hardwood holds a lot of attraction for them if they suffer from allergies or asthma.

A note of caution: If you’re considering a vinyl or other synthetic wood-look flooring, you might find you have fewer takers. Those with allergies tend to stay away from household products that can release VOCs (volatile organic compounds), which make asthma worse. Laminate products and especially those products requiring glue can be a source of VOCs. A better option is engineered wood since the surface is a layer of wood veneer over several layers of wood.

In many cases, hardwood can boost your resale value above that of carpet and yet the cost to you is relatively reasonable. According to a market data study done by USA Today, hardwood flooring is one feature people are willing to pay extra for.

If you’re considering some upgrades before you put your home on the market, take a look at replacing the flooring with real hardwood, or an engineered hardwood. Many retailers have end-of-the year specials on home upgrade products.

As always, if you have questions about the best changes to make for your home’s resale value, talk to your local real estate professional.

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It’s the end of the year.

You’re already thinking ahead to the spring. You have tons of plans for home improvements.

So why bring this up now?

December is the perfect time to make some money moves to improve your bottom line and get your home ready for the New Year.

Property Taxes

Most property taxes are due by the end of January, but if you pay yours in December you can take the deduction in 2015 and perhaps have a nice little bump in your tax return. Talk to your reliable tax accountant similar to a Trusted Accountant in Liverpool to see if this would work well for you.

Early Mortgage Payments

If you make a second mortgage payment in December you’ll have a little more interest to write off in 2015. Again, as with any tax strategy, check with your tax accountant to see if this is a good move for you.

Leverage Holiday Sales

Home improvement stores, appliance dealers and even carpet companies offer sales and discounts in anticipation of the holidays. If you’ve got a home improvement in mind, or are planning to work on a home project in the New Year, utilize the holiday low prices to buy your materials, appliances, fixtures or tools. You can even put tools on your Christmas list and maybe Santa will put that impact drill or reciprocating saw under the tree. If your washing machine is still fairly new, you may hire a washer and dryer repair technician to service it instead of buying a new one. 

Take an Energy Check Up

Give your home an energy check up to see if your can reduce your utility bills during the high-usage winter months. Contact your local utility to see if they can give your home an energy audit. According to the Department of Energy you can save between five and thirty percent on your energy bill by making some efficiency upgrades to your home. Check out Simply Switch to know more ways on how to save on energy bills. A professional audit can tell you the best places to save the most money.

Other ideas include:

• Seal your windows
• Use a “draft dog” or other draft stopper around your threshold
• Wear layered clothing
• Change your ceiling fan to run clockwise. Typically, fans run counter-clockwise to move cool air. Reversing your fan (on low speed) helps push rising warm air back down into the room. The air near the ceiling can be as much as 10 degrees higher than the air near your feet, so moving the warm air back into the room can lower your energy needs.
• Close window coverings a dark. As soon as the sun sets, close the curtains, drapes and blinds. They act as an insulation barrier to keep the cold out and the warm air in. But, when the sun it out and shining through those windows, open up the window coverings to let that radiant heat in.
• Cook in your oven. Baking or roasting your home-cooked meals gives some extra warmth to your home.
• Replace your furnace filter. Constant running clogs the filter with dust and debris. Clean or replace the filter regularly throughout the winter and you’ll have a more efficient furnace…and lower energy bills.
• Get a new water heater installation with a higher energy-efficiency rating. Otherwise, you may just put a blanket on your water heater.
• Add insulation to your attic. You may opt for Low GWP Spray Foam as your insulation material.
• Consider using energy efficient LED decorations

Your real estate professional can point you in the direction of other savings available in your area.

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Thanksgiving is over and the holiday season is in full swing.

You’ve been imaging all the ways you can decorate your new home to celebrate the season, so to keep you and your family safe in your new place we’ve gathered this list of dangerous decorating choices to avoid:

• Don’t over crowd your space. In the same way that you plan which furniture to fit into a room, make sure your decorations fit in the space you have planned for them.
• Make sure there is space between your tree and the wall.
• Keep trees and other décor away from fireplaces.
• Likewise, keep decorations away from heaters and vents.
• Do not overload your circuits. That means not plugging all the lights into one lightweight extension cord. Spread your electrical use among several circuits if you can.
• Hide cords along walls or under furniture so that visitors and family don’t trip over them.
• If you have small children or pets, consider putting a fence or barrier around the tree so that curious little ones or anxious pets cannot tip the tree over.
• Avoid using decorations that look like candy if small children might mistake them for the real thing.
• Keep candles away from greenery or other flammables.
• Don’t use a space heater near where wrapping paper might be discarded.
• If you’re using a ladder to hang lights or decorate the tree, have a second person there to hold the ladder steady.
• When hanging lights from gutters, use gutter clips to avoid damaging your gutters or nailing holes in your roof that might later cause leaks.
• Use outdoor rated extension cords, timers and decorations outdoors.
• Avoid wrapping handrails with prickly decorations. Visitors to your home need to be able to use the railing for safely.
• If you have a fresh tree or plants, keep them watered so that they don’t become over dry and turn into a fire hazard.
• Keep fragile ornaments far out of reach of little hands.
• If using a menorah or kinara in a window, make certain window coverings are tied out of the way. Protect furniture from candle drips and keep flame at least 12 inches away from anything flammable.
• Make sure that older family members keep medicines put away out of sight of smaller family members.
• Keep holiday plants (especially those with bright berries or that might be poisonous) out of reach of pets and children alike.

Since you are new to the neighborhood, if you plan to have lots of guests, check with your new neighbors to make sure they know who belongs and who doesn’t. Make sure your guests have plenty of room to park on cleaned driveways and have dry sidewalks to walk on.

Most of all, have a wonderful holiday.

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Turkey. Dressing. Sweet potato casserole. Pumpkin pie with fresh whipped cream.

Yum!

You anticipate the traditional savory Thankgiving menu all year long.

But, this year, your home is on the market. As a very motived seller, you may be planning an open house over the Thanksgiving holiday.

If so, kudos to you … especially if you have family visiting from out of town.

Here are the things you need to be aware of to put your home in the absolute best light for visitors:

1. Don’t plan the open house for Thanksgiving Day

This probably goes without saying, but most people have plans on the day and it’s doubtful they’ll slip away from the table to come visit your home. Of course, even though we really, really, really want to sell your home, we probably won’t host your open house on Thanksgiving either. On the other hand, if a neighbor has guests and they want to take a look at your home … we’ll leave that one up to you, but they’ll get a better view of your home if they come on a different day.

2. Expect series buyers

If a buyer is willing to give up Black Friday, Small Business Saturday, or their Sunday (being the last day of the long weekend) to visit your open house, they are probably serious about looking at your home. So, while you may have less traffic, visitors have taken the time out of their holiday to take a look at your home.

3. Go easy on decorations

Lots of folks spend the Thanksgiving holiday pulling out the Christmas decorations, setting up the tree, hanging lights and generally getting their homes ready for the December holidays. If you’re planning to have an open house, consider delaying your Christmas or other holiday decorating until after the open house. While simple, tasteful seasonal decoration may be appropriate and festive, decking the halls might overwhelm buyers, try to stick to extra large rugs in he living room but don’t go further than that. They need to see your home in as natural a state as possible so that they can make an informed decision.

4. Beware of lingering odors

A full day of roasting and baking is fabulous on the big day … everyone wants to smell freshly prepared delights. But those fragrant aromas can become stuffy, distasteful, off-putting odors than can turn off buyers. Take the time to thoroughly air out your home. Clean up oven spills and hide away leftovers. Spray an odor suppressor around your home too, just to be on the safe side.

5. Find a place to be

While your home is open, make yourself scarce. If you have houseguests or visiting family, plan a place to go. Serious buyers need the opportunity to peek into cupboards, and closets, poke around corners and cubbyholes and most of all, ask probing questions.

Only your real estate professional can advise you about having an open house over the Thanksgiving weekend. Ask us!

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