Tag: homeownership

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Tax Benefits of Homeownership

Homeownership has many benefits — and some of the primary financial benefits come at tax time!  Here are some key points you need to know about homeownership and taxes:

 

Deductibility of property taxes

As a homeowner, you are required to pay an annual property tax on your home (if you are a renter, you’re already paying your landlord’s property taxes; it’s just included in your monthly rental payment).  This annual tax can provide a nice deduction on your tax return!

The amount of property tax you pay is based on the area in which you live (how much money the local government requires) and the value of your home.  In Kentucky, the local tax assessor determines the value of your home via periodic appraisals.  If you believe that the assessor’s value is incorrect, you can challenge it, sometimes by simply calling or visiting the assessor

 

Deductibility of mortgage interest payments and “points”

Income tax benefits of homeownership also include the ability to deduct mortgage interest payments on your tax return.  Plus, if you paid “mortgage points” when you purchased the home in order to reduce your interest rate, those costs may be deductible as well.

 

Exclusion for Capital Gains taxes

Almost every item you own, including your car and television, is a capital asset. But your home is one of the few capital assets that actually might increase in value over time — which is great in that it helps build equity. As a general rule, when you sell a capital asset that has increased in value, you need to pay what are called capital gains taxes.

When it comes to selling a home, however, most homeowners qualify for an exclusion of up to $250,000 of the gain. If you’re filing jointly, this exclusion rises to $500,000. This means that if your home rises in value, you can — up to a substantial point — reap benefits without being penalized at tax time.

 

Please note that these insights are not intended to provide specific tax or legal advice – be sure to see your CPA for the best advice concerning your own, unique situation.

 

Categories
Home Insights Home Owning Tips Newsletter Featurettes

Tax Benefits of Homeownership

Homeownership has many benefits — and some of the primary financial benefits come at tax time!  Here are some key points you need to know about homeownership and taxes:

 

Deductibility of property taxes

As a homeowner, you are required to pay an annual property tax on your home (if you are a renter, you’re already paying your landlord’s property taxes; it’s just included in your monthly rental payment).  This annual tax can provide a nice deduction on your tax return!

The amount of property tax you pay is based on the area in which you live (how much money the local government requires) and the value of your home.  In Kentucky, the local tax assessor determines the value of your home via periodic appraisals.  If you believe that the assessor’s value is incorrect, you can challenge it, sometimes by simply calling or visiting the assessor

 

Deductibility of mortgage interest payments and “points”

Income tax benefits of homeownership also include the ability to deduct mortgage interest payments on your tax return.  Plus, if you paid “mortgage points” when you purchased the home in order to reduce your interest rate, those costs may be deductible as well.

 

Exclusion for Capital Gains taxes

Almost every item you own, including your car and television, is a capital asset. But your home is one of the few capital assets that actually might increase in value over time — which is great in that it helps build equity. As a general rule, when you sell a capital asset that has increased in value, you need to pay what are called capital gains taxes.

When it comes to selling a home, however, most homeowners qualify for an exclusion of up to $250,000 of the gain. If you’re filing jointly, this exclusion rises to $500,000. This means that if your home rises in value, you can — up to a substantial point — reap benefits without being penalized at tax time.

 

Please note that these insights are not intended to provide specific tax or legal advice – be sure to see your CPA for the best advice concerning your own, unique situation.

 

Categories
Home Insights Home Owning Tips Newsletter Featurettes

Tax Benefits of Homeownership

 

Homeownership has many benefits — and some of the primary financial benefits come at tax time!  Here are some key points you need to know about homeownership and taxes:

 

Deductibility of property taxes

As a homeowner, you are required to pay an annual property tax on your home (if you are a renter, you’re already paying your landlord’s property taxes; it’s just included in your monthly rental payment).  This annual tax can provide a nice deduction on your tax return!

The amount of property tax you pay is based on the area in which you live (how much money the local government requires) and the value of your home.  In Kentucky, the local tax assessor determines the value of your home via periodic appraisals.  If you believe that the assessor’s value is incorrect, you can challenge it, sometimes by simply calling or visiting the assessor

 

Deductibility of mortgage interest payments and “points”

Income tax benefits of homeownership also include the ability to deduct mortgage interest payments on your tax return.  Plus, if you paid “mortgage points” when you purchased the home in order to reduce your interest rate, those costs may be deductible as well.

 

Exclusion for Capital Gains taxes

Almost every item you own, including your car and television, is a capital asset. But your home is one of the few capital assets that actually might increase in value over time — which is great in that it helps build equity. As a general rule, when you sell a capital asset that has increased in value, you need to pay what are called capital gains taxes.

When it comes to selling a home, however, most homeowners qualify for an exclusion of up to $250,000 of the gain. If you’re filing jointly, this exclusion rises to $500,000. This means that if your home rises in value, you can — up to a substantial point — reap benefits without being penalized at tax time.

 

Please note that these insights are not intended to provide specific tax or legal advice – be sure to see your CPA for the best advice concerning your own, unique situation.

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Home Buying Tips Home Insights Newsletter Featurettes Uncategorized

Considerations for Today’s Tech-Savvy Home Buyers

There are a number of great apps and programs that can easily control the systems in your home – many of which can be mastered even if your tech skills are less than expert.   Here are some tech-related tips to consider when buying a home in today’s market!

Get connected

While most homes will be wired for cable and Internet, you might want to see if the nearest cell tower is providing good mobile phone service for you in case your Wi-Fi doesn’t reach to that grill in the backyard. Obviously, if you love the home this may not be a deal-breaker, but it’s nice to know if you’ll need to consider switching phone carriers before moving into your new abode.

Create a smart home

Many buyers want to connect their home’s systems, appliances and technologies so they can easily control them from their mobile devices. A common example of this is the Nest thermostat, which becomes intelligent to your living habits over time and turns itself down when you’re away.  Nest also features a live-streaming service, to provide a full smart home service that includes smoke and carbon monoxide detection.

The Rachio smart sprinkler system is good way to keep your utility bills down. Rachio measures weather conditions in your area and makes sure your lawn is watered only as much as it needs to stay lush and green.

While devices like Nest and Rachio help you save money, many other smart home products are designed with convenience and safety in mind. For example, products like Ascend and LiftMaster open and close your garage door from your smartphone, allowing you to let in guests when you’re not around or to double check that your home is secure even after you get to work.  Similarly, the August Smart Lock detects when you (or approved guests) are approaching and unlocks your front door. That’s right — you can finally carry all seven grocery bags into your home at once! Plus, August’s customization options mean you can give 24/7 access to your world-traveler brother who shows up unannounced but only let your contractor in when you have a set appointment.

Also, for those of us who aren’t morning people, there are several automatic coffee makers out there that will brew coffee on demand from your smartphone in just minutes. Although you can set up a brew time in advance, just think of the power you’ll feel when you hit “brew” — then “snooze” — allowing a few more minutes of sleep and the promise of a fresh cup of joe when you finally arise!

One final thought – remember that if you control security systems or smart appliances with your mobile phone, you need to be sure the device is protected against hackers. Add a pass code to your phone, and download an app that will remotely erase data if your phone is lost or stolen.

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Home Insights Home Owning Tips

Home Safety: Using Fireworks

Gorgeous flames light up the sky in a yearly reminder of our county’s founding story.  While fireworks are loud, exciting, and fun – they can also become dangerous very quickly.  Fireworks are an explosive device, and as such must be respectfully used.

Did you know?  
In Kentucky, state law prohibits you from using fireworks within 200 feet of a structure (that includes your home)!

(Kentucky) State Fire Marshal Mike Haney says the safest way to celebrate is by leaving the pyrotechnics to the professionals. He says home use of fireworks could cause personal or property damage and might also be prohibited by local ordinances. [source] There are plenty of professional shows going on this weekend!  Check out our list of WHERE TO SEE THE FIREWORKS!

 

Lexington Police Department also released a great video on Facebook, reminding Lexingtonians of some of the more strict City Ordinances regarding fireworks.  If you’re a Fayette County resident, we suggest giving this video a watch!

video_lexingtonpolics

Here’s 9 Tips to Stay Safe around Fireworks

Pin this list, just click the graphic! 

 

Happy Indepence Day! Celebrate Safely!-From the Rector Hayden family to yours!

 

 The National Council of Fireworks Safety suggests the following safety tips…

  • Obey all local laws regarding the use of fireworks.
  • Know your fireworks; read the cautionary labels and performance descriptions before igniting.
  • A responsible adult SHOULD supervise all firework activities.  Never give fireworks to children.
  • Alcohol and fireworks do not mix.  Save your alcohol for after the show.
  • Wear safety glasses when shooting fireworks.
  • Light one firework at a time and then quickly move away.
  • Use fireworks OUTDOORS in a clear area; away from buildings and vehicles.
  • Never relight a “dud” firework.  Wait 20 minutes and then soak it in a bucket of water.
  • Always have a bucket of water and charged water hose nearby.
  • Never carry fireworks in your POCKET or shoot them into METAL or GLASS containers.
  • Do not experiment with homemade fireworks.
  • Dispose of spent fireworks by wetting them down and place in a metal trash can away from any building or combustible materials until the next day.
  • FAA regulations PROHIBIT the possession and transportation of fireworks in your checked baggage or carry-on luggage.
  • Report illegal explosives, like M-80s and quarter sticks, to the fire or police department.

National Council on Fireworks Safety Seal