home ownership in lexington ky: Enjoy Your Improvements & Profit by Them
- 10/14/14 08:22 AM
Enjoy Your Improvements and Profit by Them Homeowners can raise the basis or cost in their home by money spent on capital improvements. The benefit is that it will lower their gain and may save them taxes when they sell their home.
Improvements must add value to your home, prolong its useful life or adapt it to new uses. Repairs are routine in nature to maintain the value and keep the property in an ordinary, operating condition. Additions of decks, pools, fences and landscaping add value to a home as well as new floor covering, counter-tops and other updates. (2 comments)
Which Filter to Use? A dirty air filter decreases the effectiveness of your HVAC system because it inhibits airflow and allows dirt, dust, pollen and other materials to blow through the system.
The challenge is how often it should be changed to keep the system working efficiently and extend the equipment life. Too often and you’re wasting money and not often enough and your increasing the operating and maintenance costs. Fiberglass panel filters are inexpensive and easy to find but they’re not very efficient and they allow most dust to pass through. They were popular years ago (2 comments)
Another decision that can affect equity build-up is making additional principal contributions along with the regular payments. Whether you’re making an occasional lump sum payment toward principal or regular monthly contributions, it will save interest, build equity and shorten the term on a fixed rate mortgage. Estimate your personal savings with this Equity Accelerator. (2 comments)
There is a significant difference in how the money you spend on your home is treated for income tax purposes. Repairs to maintain your home’s condition are not deductible unlike rental property owners who can deduct repairs as an operating expense.
On the other hand, capital improvements to a home will increase the basis and affect the gain when you sell which may save taxes. Additions to a home or other improvements that have a useful life of more than one year may be considered an increase to basis or cost of the home. Other (0 comments)
Dripping Dollar$ Conserving water to be green while lowering your monthly bill to save green is a beneficial combination. Little things can contribute significantly to a large water bill. Leaky faucets can waste over 1,000 gallons a year Leaky toilets can waste 7,000 gallons a month A five-minute shower saves more water than a tub bath Water running while you brush your teeth or shave Sprinkler heads need to be adjusted to spray on the yard only Install a rain sensor on sprinkler system Pool equipment can be a hidden source of wasted water A larger than normal water (2 comments)