Go With Your Best Option - Sleepless in Sturbridge

Hi All!  Check out this week's episode of Kath's Happy Monday Real Estate Report!  Things are consistently busy right now and Spring is just around the corner.  Are you ready to buy or sell?  I'd love to help!  508-444-2673 & thanks for watching!  

 

 

 

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            Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!

THIS BLOG WAS BROUGHT TO YOU BY: Kathleen Cooper RE/MAX Professional Associates  YOUR Social Media Girl Providing Social Media Training & Coaching - Click the picture to Follow My Fan Page & Learn More About How I Can Help You Grow! Phone: 508-444-2673 Email:  BestOptionTeam@Gmail.com

 

 

 

 

      

Working from home can offer many advantages including tax deductions. Just take care what you try to write off for your home office on your return.

Passing the IRS litmus test

To meet IRS guidelines, your home office must be your principal place of business, or the place you see clients in the normal course of business. Parts of your home you use to store products or equipment for your business also count. That doesn't mean that all your work has to be done from home. If you're an outside salesperson, you probably spend most of your work time elsewhere. But if you do you billing and return customer calls primarily from your home, your home office should qualify.

You can also qualify for the deduction if your employer requires you to work from home, as long as you don't charge your employer rent. One big catch is that you must maintain the at-home office for your employer’s convenience, not your own, such as to complete reports at night or on weekends. Self-employed workers use IRS Form 8829 to calculate the deduction, which they list on Schedule C.

Measuring your home office

The amount you can deduct for your home office depends on the percentage of your home used for business. Your work space doesn't need to be a separate room—a table in a corner qualifies. But it has to be an area that's used solely for business. The tax break also covers separate structures on your property, like a detached garage you've converted to an office. Unlike an office inside your home, a separate structure doesn't have to be your main place of business to qualify for a deduction. That's because the IRS believes your family is less likely to use a separate structure as a part-time play area or den, says Mark Luscombe, principal analyst for tax and consulting at CCH.  

To calculate what percentage of your house the home office occupies, divide your home office's square footage by the total square footage of your home. If your home is 3,000 square feet and your office is 150 square feet, for example, you'd use 5% to calculate your deductions. Not sure how big your house is? Check the documents you received when you bought your home—there's probably a detailed rendering—or measure the outside of your home and multiply length times width.

What can you deduct?

Once you've figured out what percentage of your home you use for business, you can apply that percentage to different home expenses. These include:

• Mortgage interest

• Real estate taxes

• Utilities (heating, cooling, lights)

• Home repairs and maintenance (painting, cleaning service)

• Home owners insurance premiums

Just take each expense and multiply it by your home office percentage (the 5% mentioned above). That's the amount you can deduct as a business expense. So if you spend $150 a month on electricity, you can deduct $7.50 as a business expense. That adds up to a $90 deduction per tax year. 

Save bills or cancelled checks to prove what you spent in case of an IRS audit. Take an hour a week to file them away. Also, only repairs can be expensed; improvements must be depreciated.

Don't forget depreciation

Depreciation is based on the idea that everything—even something like a home—wears out eventually. To figure home office depreciation, start by calculating the tax basis of your home: generally the purchase price plus the cost of improvements, minus the value of the land it sits on. Next, multiply the tax basis by the percentage of your home used for work. This gives you the tax basis for your home office.

Usually, depreciation deductions for a home office are figured over a 39-year period. There are caveats. For a crash course, read IRS Publication 946 or talk to a tax pro.

Keep in mind that depreciation deductions on your home office increase the amount of profit on a home sale that is subject to taxes. There’s an exclusion of $250,000 of profit if you’re a single filer, $500,000 for joint filers. Consult with a qualified tax professional on how depreciation deductions affect your tax liability when you sell.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

 

 

 

Watch My Popular Video Blogs:

  

2012 New Year's Goals

Social Media Video Testimonial For Kathleen Cooper

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            Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!

THIS BLOG WAS BROUGHT TO YOU BY: Kathleen Cooper RE/MAX Professional Associates  YOUR Social Media Girl Providing Social Media Training & Coaching - Click the picture to Follow My Fan Page & Learn More About How I Can Help You Grow! Phone: 508-444-2673 Email:  BestOptionTeam@Gmail.com

 

 

 

 

      

Here we are in February and ice hasn't yet been a problem, but can you remember last year??  I had a ton of listings dealing with issues with ice dams.  We're not in the clear with our winter weather in Massachusetts so we should still be taking precautions.  Here’s how to protect your home from damage.

Potential damage

Over the five-year period leading up to 2007, water damage and freezing accounted for the second largest share of homeowner insurance claims, according to Claire Wilkinson of the Insurance Information Institute. The average homeowner claim for such damages was $5,531.

Ice dams are responsible for cracked plaster ceilings and walls, peeling paint, soaked carpets, and buckled wood floors. Less visible but no less destructive effects include drenched insulation, rotting joists, and the formation of mold. The most common form of ice dam-related damage is collapsed rain gutters, which can cost $100 to $300 per side to repair.

What causes ice dams

As heat rises from a home, it melts the accumulated snow on the roof. That melted snow travels down the roof in liquid form until it reaches the eave line and gutter, where it refreezes due to colder temps. This ice ridge continues to expand, blocking the flow of subsequent snow melt.

As water continues to melt higher up the roof, it collects behind the ice dam in the form of a puddle. Because that water sits over the warmer portion of the roof, it doesn’t freeze.

In order for ice dams to form, there needs to be roof snow buildup, home heat loss, and subfreezing temperatures. The more snow, the larger the heat loss, and the longer the subfreezing temperatures remain, the higher the likelihood that ice dams will materialize.

Preventing ice dams

Homeowners can’t control the weather, but they can do something about heat loss. “The main goal is to keep heat from reaching the roof, thus preventing snow melt in the first place,” explains Doug Bruell, president of Cleveland’s 25-year-old North Coast Insulation. Proper insulation and ventilation of the attic space is intended to keep the roof surface at or near outdoor temperatures.

Typical steps include insulating the attic floor and installing soffit, gable and/or ridge vents to expel heat. Folding attic stairways and recessed light fixtures also need to be insulated. “All penetrations into the attic from the heated living space need to be addressed,” adds Bruell. Homeowners can expect to pay $800 to $1,500 to insulate the attic, plus another $300 to $600 for the installation of vents.

The process is a bit more involved for homes with finished attics, says Bruell. To facilitate sufficient cold air flow from soffit vent to ridge vent, baffles or tubes are installed between the ceiling insulation and the underside of the roof. This might involve opening up the ceiling.

Insulation means savings

According to the U.S. Department of Energy, adding insulation to an unheated attic will have a greater impact on energy consumption than placing it anywhere else in the house. A properly insulated and ventilated attic not only reduces winter heating bills, it will trim summer cooling bills by expelling heat buildup. You can expect to save 10% to 50% on your heating and cooling bills. 

In addition, you may qualify for a federal tax credit of up to $500.

Deicing alternatives

In theory, roof rakes, brooms, and other long-handled devices can be used to remove snow before it has a chance to melt. In practice, however, the scheme is difficult to pull off, considering that most homeowners can’t reach all areas of the roof.

Electrically-heated deicing cables, which install along eave lines to inhibit water freeze, are only moderately effective, says Bruell. “These heat cables often just back up the problem, forcing the dams to form higher up the roof.” In addition to the purchase price ($150 to $300), and installation ($300 to $500), these cables require electricity to run. They also can shorten the life of roof shingles.

Ice dam removal

Homeowners suffering the effects of an ice dam--or those who fear a leak is imminent--can hire a roofing company to remove the ice buildup. Rather than employ hammers, chisels, and salt, which can damage the roof and gutters, technicians will steam away the ice and remove any remaining snow. Expect to pay around $500 or more for the service. It goes without saying that do-it-yourself removal can be dangerous when it involves ladders, heavy ice, and slippery roofs.

 

 

 

Watch My Popular Video Blogs:

  

2012 New Year's Goals

Social Media Video Testimonial For Kathleen Cooper

Perception Is Everything - Best Practices 

 

            Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!

THIS BLOG WAS BROUGHT TO YOU BY: Kathleen Cooper RE/MAX Professional Associates  YOUR Social Media Girl Providing Social Media Training & Coaching - Click the picture to Follow My Fan Page & Learn More About How I Can Help You Grow! Phone: 508-444-2673 Email:  BestOptionTeam@Gmail.com

 

 

 

 

      

What a day!!  I've been running around since 7:30 this morning & still going strong!  Have a few more hours of work to put in before this day is done.  Check out my Happy Monday Real Estate report informing you that the Spring market has started ALREADY!  If you are looking to buy, sell or invest in real estate, remember to call YOUR Best Option - Kathleen Cooper.  Thanks for watching!  

 

 

 

Watch My Popular Video Blogs:

  

2012 New Year's Goals

Social Media Video Testimonial For Kathleen Cooper

Perception Is Everything - Best Practices 

 

            Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!

THIS BLOG WAS BROUGHT TO YOU BY: Kathleen Cooper RE/MAX Professional Associates  YOUR Social Media Girl Providing Social Media Training & Coaching - Click the picture to Follow My Fan Page & Learn More About How I Can Help You Grow! Phone: 508-444-2673 Email:  BestOptionTeam@Gmail.com

 

 

 

 

      

Americans still think buying a home is one of the best decisions they’ve ever made. Here are some ways to increase your home’s value and comfort for less than $1,000.

 We knew reports of the death of American home ownership were greatly exaggerated (nod to Mark Twain), and now we’ve got the numbers to prove it.

A just-released survey by the Meredith Corp., which publishes Better Homes and Gardens magazine, says the vast majority of people polled believe owning a home is a smart financial move and a source of pride.

Here are some results of the 2,500 people surveyed online:

• 86% of home owners still feel owning a home is a good investment.  

• 85% feel "owning a home is one of their proudest accomplishments."

• 69% of Americans who don’t currently own a home agree with the statement, "No matter what happens in the U.S. housing market, owning a home is still an important goal in my life."

• 68% of Americans plan to spend money on their homes in the next six months, with roughly half (49%) expecting to pay up to $1,000.

A thousand bucks may not seem like a lot, but it goes long way toward improving the value and comfort of your home. Here are some projects we recommend:

1. Add a new entry door. Spruce up your curb appeal and save energy by upgrading your exterior door. Steel doors, which can mimic many types of wood, typically run for $400 at big-box stores and offer the strongest barrier against intruders.

2. Get organized. Decluttering and maximizing storage space are inexpensive ways to transform a home. Add space to kids’ rooms by installing platform or bunk beds ($400-$600); neaten piles of shoes with shoe organizers ($20), which can do double duty as catch-all organizers in family room closets and kitchen pantries; extend bookshelves to the ceiling, creating storage in otherwise dead space.

3. Save with a programmable thermostat. Switching from a manual to a programmable thermostat (less than $500) can save you up to $180 a year in energy costs. The latest models offer remote programming via the Internet.

4. Replace cabinet hardware. If you’ve got traditional knobs and pulls, try contemporary; change from staid to whimsical. Big-box retailers often have huge selections for budget prices. (10-pack for $20).

5. Update bathroom flooring. Give bathrooms a quick facelift by replacing old tile with vinyl flooring or ceramic tile, which can cost as little as $3 per square foot for material and installation.

6. Create luxury with a shower panel. Turn you bathroom into a spa with a programmable shower panel with adjustable spray jets, fog-free mirror, and multifunctional shower head. Most systems easily attach to existing plumbing. Panels typically sell for $360.

7. Turn a mudroom into a garden room. Bring nature inside by recasting your drab mudroom into a flower-filled garden room. (If you already have a utility sink, you’re halfway there. If not, it will cost you $200 to $350 to tap into existing, nearby plumbing, and $80 for a plastic tub.) Repurpose an old wood table into a potting bench. And hang your basket collection from J-hooks attached to a forged iron curtain rod ($100).

What improvements have you made recently under $1,000? What are you planning to do in the next six months?

 

 

 

Watch My Popular Video Blogs:

  

2012 New Year's Goals

Social Media Video Testimonial For Kathleen Cooper

Perception Is Everything - Best Practices 

 

            Kathleen Cooper Best Option *** RE/MAX Professional Associates *** LICENSED IN MA!

THIS BLOG WAS BROUGHT TO YOU BY: Kathleen Cooper RE/MAX Professional Associates  YOUR Social Media Girl Providing Social Media Training & Coaching - Click the picture to Follow My Fan Page & Learn More About How I Can Help You Grow! Phone: 508-444-2673 Email:  BestOptionTeam@Gmail.com