Entries in home (24)

Wednesday
Dec302015

Tax and Home Records Checklist: What to Keep and For How Long?

Want to rest assured you have all the documents you need when you need them, but not be awash in paper? Read on.

Unless you’re living in the 123-room Spelling Manor, you probably don’t have space to store massive amounts of tax and insurance paperwork, warranties, and repair receipts related to your home. But you’ll definitely want your paperwork at hand if you have to prove you deserved a tax deduction, file an insurance claim, or figure out if your busted oven is still under warranty.

Except for tax paperwork, there’s no official guideline governing exactly how long you have to keep most home-related documents. Lucky for you, we considered the situations in which you might need documents and came up with a handy “How Long to Keep It” home records checklist.

First, a little background on IRS rules, which informed some of our charts:

  • The IRS says you should keep tax returns and the paperwork supporting them for at least three years after you file the return — the amount of time the IRS has to audit you. So that’s how long we advise in our charts.
  • Check with your state about state income tax, though. Some make you keep tax records a really long time: In Ohio, it’s 10 years.
  • The IRS can also ask for records up to six years after a filing if they suspect someone failed to report 25% or more of his gross income. And the agency never closes the door on an audit if it suspects fraud. Just sayin’.
HOME SALE RECORDS
Document How Long to Keep It
Home sale closing documents, including HUD-1 settlement sheet As long as you own the property + 3 years                         
Deed to the house As long as you own the property
Builder’s warranty or service contract for new home Until the warranty period ends
Community/condo association covenants, codes, restrictions (CC&Rs) As long as you own the property
Receipts for capital improvements As long as you own the property + 3 years
Section 1031 (like-kind exchange) sale records for both your old and new properties, including HUD-1 settlement sheet As long as you own the property + 3 years
Mortgage payoff statements (certificate of satisfaction or lien release) Forever, just in case a lender says, “Hey, you still owe money.”

Why you need these docs: You use home sale closing documents, receipts for capital improvements, and like-kind exchange records to calculate and document your profit (gain) when you sell your home. Your deed and mortgage payoff statements prove you own your home and have paid off your mortgage, respectively. Your builder’s warranty or contract is important if you file a claim. And sooner or later you’ll need to check the CC&R rules in your condo or community association.

ANNUAL TAX DEDUCTIONS
Document How Long to Keep It
Property tax payment (tax bill + canceled check or bank statement showing check was cashed) 3 years after the due date of the return showing the deduction
Year-end mortgage statements 3 years after the due date of the return showing the deduction
PMI payment (monthly bills + canceled check or bank statements showing check was cashed) 3 years after the due date of the return showing the deduction
Residential energy tax credit* receipts 3 years after the due date of the return on which the credit is claimed (including carryforwards**)

Why you need these docs: To document you’re eligible for a deduction or tax credit.

*Energy tax credits for alternative energy sources; credit expires at the end of 2016.

**Tax credits that you carry forward from one year to a future year, such as when you don’t have enough tax liability to offset the entire amount of the credit. (You can’t deduct more than you earn.) Only certain tax credits can be carried forward. Check with your tax pro about your particular circumstances.

INSURANCE AND WARRANTIES
Document How Long to Keep It
Home repair receipts Until warranty expires
Inventory of household possessions Forever (Remember to make updates.)
Homeowners insurance policies Until you receive the next year’s policy
Service contracts and warranties As long as you have the item being warrantied

Why you need these docs: To file a claim or see what your policy or warranty covers.

INVESTMENT (LANDLORD) REAL ESTATE DEDUCTIONS
Document How Long to Keep It
Appraisal or valuation used to calculate depreciation As long as you own the property + 3 years
Receipts for capital expenses, such as an addition or improvements As long as you own the property + 3 years
Receipts for repairs and other expenses 3 years after the due date of the return showing the deduction
Landlord’s insurance payment receipt (canceled check or bank statement showing check was cashed) 3 years after the due date showing the deduction
Landlord’s insurance policy Until you receive the next year’s policy
Partnership or LLC agreements for real estate investments As long as the partnership or LLC exists + 7 years
Landlord insurance receipts (canceled check or bank statement showing check was cashed) 3 years after you deduct the expense

Why you need these docs: For the most part, to prove your eligibility to deduct the expense. You’ll also need receipts for capital expenditures to calculate your gain or loss when you sell the property. Landlord’s insurance and partnership agreements are important references.

MISCELLANEOUS RECORDS
Document How Long to Keep It
Wills and property trusts Until updated
Date-of-death home value record for inherited home, and any rules for heirs’ use of home As long as you own the home + 3 years
Original owners’ purchase documents (sales contract, deed) for home given to you as a gift As long as you own the home + 3 year
Divorce decree with home sale clause As long as you or spouse owns the home + 3 years
Employment records for live-in help (W-2s, W-4s, pay and benefits statements) 4 years after you make (or owe) payroll tax payments

Why you need these docs: Most are needed to calculate capital gains when you sell. Employment records help prove deductions. 

Organizing Your Home Records

Because paper, such as receipts, fades with time and takes up space, consider scanning and storing your documents on a flash drive, an external hard drive, or a cloud-based remote server. Even better, save your documents to at least two of these places.  

Digital copies are OK with the IRS as long as they’re identical to the originals and contain all the accurate information that was in the original receipts. You must be able to produce a hard copy if the IRS asks for one.

Tip: Tax season and year’s end are good times to purge files and toss what you no longer need; that’s often when the spirit of organization moves us.    

When you do finally toss out your home-related paperwork, use a shredder. Throwing away intact documents with personal financial information puts you at risk for identity theft.

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

 

Saturday
Dec052015

3 Brilliant Hacks to Make Snow Shoveling Less Miserable

Don’t break your back shoveling snow. Try these tips to make winter less of a burden.

Person shoveling snow in a yard

Winterize your home nav bar

If you’re a homeowner in a snowy climate, chances are good you rue the winter: All that snow has to go somewhere, and it’s not getting there itself. 

Cue the snow shovel.

Barring a move to a snow-free state or barricading your family inside all winter, there’s no way to avoid the endless task of shoveling snow. There are, however, ways to make the process much easier. Here are three simple hacks to make the morning after a snowfall much less stressful.

1.  Spray Your Shovel with Cooking Oil

Snow sticking to your shovel makes an already arduous task even more obnoxious. Avoid it with this hack: Lightly coat your shovel with non-stick cooking oil to make snow slide right off. No more time wasted removing snow from your snow remover. (You can substitute a spray lubricant like WD-40, but the downside is it’s toxic.)

2.  Lay Out a Tarp Before the Snow

If you like short cuts, this technique, billed as “the laziest way imaginable” to clear snow, according to a tutorial from “Instructables,” has got your name on it. The day before an expected snowfall, lay a tarp on your walkway. When the snow finishes falling, just pull out the tarp, and voilà: an instantly cleared walkway. (Word to the wise: Make sure pedestrians won’t trip on your tarp; include a sign or use this technique in your backyard walkway if you’re concerned.)

The technique requires a tarp, firewood, and twine as well as some prep work. Pre-storm, use firewood to weigh down your tarp — you don’t want it flying away in the wind! — and tie the twine to both the tarp and to a shovel standing upright in your yard. You’ll use the shovel to pull out the snow-laden tarp. 

Although this method might be faster than shoveling, it does require manpower. After all, a cubic foot of snow can weigh between 7 and 20 pounds. So don’t get too ambitious with the size of your tarp or you might not be able to pull it once it’s full of snow. 

3.  Make a Homemade De-icing Cocktail

De-icers make snow removal easier by cutting through the tough, icy layers that are a pain to remove with a shovel. But an easy solution should be easy on your property as well. Many commercial de-icers are pretty harsh.

Commercial ice-melting substances — magnesium chloride, calcium chloride, potassium chloride, and sodium chloride (salt) — all cause damage to the environment, according to the University of Maryland’s Home and Garden Information Center. They can also damage concrete sidewalks and driveways, which mean hefty repair costs later. 

A better solution: Make your own de-icer using rubbing alcohol or vinegar. You’ll save money, too. Commercial melters typically cost $8 or more. Plus, you’ll avoid the hassle of trekking to the hardware store to stock up.

Use vinegar before a storm to make ice and snow removal easier:

  • Combine 3 parts vinegar to 1 part water.
  • Spray or pour gently (you still want to avoid runoff into your landscape) before a storm.

To keep the sidewalks and steps from icing after a storm:

  • Combine 2 parts rubbing alcohol with 1 part water.
  • Apply to minimize runoff.

Read more:  http://www.houselogic.com/home-advice/seasonal-maintenance/3-hacks-make-shoveling-snow-snap/#ixzz3tSoG8p00 
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Thursday
Nov192015

Getting Ready for Winter

Fall Maintenance Checklist

By: John Riha

You’ll be ready for winter’s worst and head off expensive repairs when you complete this checklist of 10 essential fall maintenance tasks.

 

Fall maintenance checklist

1. Stow the mower.


If you’re not familiar with fuel stabilizer, you should be. If your mower sits for months with gas in its tank, the gas will slowly deteriorate, which can damage internal engine parts. Fuel stabilizer ($10 for a 10-ounce bottle) prevents gas from degrading.

Add stabilizer to your gasoline can to keep spare gas in good condition over the winter, and top off your mower tank with stabilized gas before you put it away for the winter. Run the mower for five minutes to make sure the stabilizer reaches the carburetor.

Another lawn mower care method is to run your mower dry before stowing it. 

1. When the mower is cool, remove the spark plug and pour a capful of engine oil into the spark plug hole. 

2. Pull the starter cord a couple of times to distribute the oil, which keeps pistons lubricated and ensures an easy start come spring.

3. Turn the mower on its side and clean out accumulated grass and gunk from the mower deck.

2. Don’t be a drip.

Remove garden hoses from outdoor faucets. Leaving hoses attached can cause water to back up in the faucets and in the plumbing pipes just inside your exterior walls. If freezing temps hit, that water could freeze, expand, and crack the faucet or pipes. Make this an early fall priority so a sudden cold snap doesn’t sneak up and cause damage.

Turn off any shutoff valves on water supply lines that lead to exterior faucets. That way, you’ll guard against minor leaks that may let water enter the faucet. 

While you’re at it, drain garden hoses and store them in a shed or garage.

3. Put your sprinkler system to sleep.

Time to drain your irrigation system. Even buried irrigation lines can freeze, leading to busted pipes and broken sprinkler heads.

1. Turn off the water to the system at the main valve. 

2. Shut off the automatic controller.

3. Open drain valves to remove water from the system.

4. Remove any above-ground sprinkler heads and shake the water out of them, then replace.

If you don’t have drain valves, then hire an irrigation pro to blow out the systems pipes with compressed air. A pro is worth the $75 to $150 charge to make sure the job is done right, and to ensure you don’t have busted pipes and sprinkler head repairs to make in the spring.

4. Seal the deal.

Grab a couple of tubes of color-matched exterior caulk ($5 for a 12-ounce tube) and make a journey around  your home’s exterior, sealing up cracks between trim and siding, around window and door frames, and where pipes and wires enter your house. Preventing moisture from getting inside your walls is one of the least expensive — and most important — of your fall maintenance jobs. You’ll also seal air leaks that waste energy.

Pick a nice day when temps are above 50 degrees so caulk flows easily.

5. De-gunk your gutters.

Clogged rain gutters can cause ice dams, which can lead to expensive repairs. After the leaves have fallen, clean your gutters to remove leaves, twigs, and gunk. Make sure gutters aren’t sagging and trapping water; tighten gutter hangers and downspout brackets. Replace any worn or damaged gutters and downspouts.

If you find colored grit from asphalt roof shingles in your gutters, beware. That sand-like grit helps protect shingles from the damaging ultraviolet rays of the sun. Look closely for other signs of roof damage (#5, below); it may be time for a roofing replacement. 

Your downspouts should extend at least 5 feet away from your house to prevent foundation problems. If they don’t, add downspout extensions; $10 to $20 each.

6. Eyeball your roof.


If you have a steep roof or a multistory house, stay safe and use binoculars to inspect your roof from the ground.

Look for warning signs: Shingles that are buckled, cracked, or missing; rust spots on flashing. Any loose, damaged, or missing shingles should be replaced immediately. 

Black algae stains are just cosmetic, but masses of moss and lichen could signal roofing that’s decayed underneath. Call in a pro roofer for a $50 to $100 eval.

A plumbing vent stack usually is flashed with a rubber collar -- called a boot -- that may crack or loosen over time. They’ll wear out before your roof does, so make sure they’re in good shape. A pro roofer will charge $75 to $150 to replace a boot, depending on how steep your roof is.

7. Direct your drainage.

Take a close look at the soil around your foundation and make sure it slopes away from your house at least 6 vertical inches over 10 feet. That way, you’ll keep water from soaking the soils around your foundation, which could lead to cracks and leaks.

Be sure soil doesn’t touch your siding.

8. Get your furnace in tune.

Schedule an appointment with a heating and cooling pro to get your heating system checked and tuned up for the coming heating season. You’ll pay $50 to $100 for a checkup.

An annual maintenance contract ensures you’re at the top of the list for checks and shaves 20% off the cost of a single visit.

Change your furnace filters, too. This is a job you should do every two months anyway, but if you haven’t, now’s the time. If your HVAC includes a built-in humidifier, make sure the contractor replaces that filter. 

9. Prune plants.

Late fall is the best time to prune plants and trees -- when the summer growth cycle is over. Your goal is to keep limbs and branches at least 3 feet from your house so moisture won’t drip onto roofing and siding, and to prevent damage to your house exterior during high winds.

For advice on pruning specific plants in your region, check with your state extension service.

10. Give your fireplace a once-over.


To make sure your fireplace is safe, grab a flashlight and look up inside your fireplace flue to make sure the damper opens and closes properly. Open the damper and look up into the flue to make sure it’s free of birds’ nests, branches and leaves, or other obstructions. You should see daylight at the top of the chimney.

Check the firebox for cracked or missing bricks and mortar. If you spot any damage, order a professional fireplace and chimney inspection. An inspection costs $79 to $500.

You fireplace flue should be cleaned of creosote buildup every other year. A professional chimney sweep will charge $150 to $250 for the service.



Read more:  http://members.houselogic.com/articles/fall-checklist/preview/#ixzz3rx9E9H00 
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Wednesday
Nov112015

What Food You Can and Can’t Share with Your Dog on Thanksgiving

If “drop it drop it drop it” is your dogs mantra near the dinner table then this is a must read.

via clickertraining.com

Google the phrase “Dog Stealing Turkey” and the results will yield an abundance of hilarious YouTube videos, pictures and gifs of pups doing their best to be part of their family’s Thanksgiving fun.

Slipping your little buddy a piece of Turkey is harmless. However, throwing them a piece with bones in it… not so much. The reason being they could get lodged into your pup’s throat, stomach or intestines.

As a pet owner we are sure you are very thankful for the the special role your pet plays in your home which is why you want to ensure their safety, especially around the holidays.

Follow this “How to Keep Your Dog Safe This Thanksgiving” infographic created by Dogster for an easy reference on which Turkey Day treats are safe and which ones to avoid.

 

Monday
Jul202015

How to Handle Your 'Open Concept' House

When your kitchen opens to your living room, you can't really use opposing décor in each space. Your entire home needs to flow. Here are some tricks to creating a space that is both cozy and functional.

  • Choose coordinated color palates: Decorating your kitchen in bold primary colors while keeping an autumn palate in your open living room will be torture for the eye. It is critical that you choose colors for each of these spaces that coordinate with one another. Choose one color to tie everything together and coordinating shades to blend the rooms together.
  • Create rooms within rooms: Not everyone loves large, open floor plans and sometimes it is important to create visual breaks. Use design tricks to create rooms within rooms. Use a rug, a love seat and two chairs to form a conversation area in one corner of the large space. Set your primary sofa with the back to the center of the room to break up the space and create a walking path.
  • Match your lighting: If you have a large crystal chandelier over your dining room table but your living room has a series of modern lamps, this can be confusing. Do what you can to create symmetry in lighting throughout the open space. Match the colors or the design aesthetics of lamps and light fixtures to tie the entire area together.
  • Add personality with accessories: Of course, you don't have to have one design concept for the entire house. You can use accessories to personalize each space. Maybe you would love to have owls in your kitchen. This doesn''t mean you have to extend that décor into the living space. Use different accessories around your house to separate the functions.