Spring Cleaning

Click this link to return to The W Disclosure newsletter.

The sound of summer is pleasant to the ears. It’s the time to plan a vacation and spend a lot of time outdoors enjoying the beautiful weather. As you look forward to the season, you also need to prepare your home. The cold season that’s almost ending can take a toll on your home, and it’s only imperative that you get it back in shape for summer.

This post guides you on what to do by May 1st to ensure your space cools more efficiently during summer.

Do Your Spring Cleaning

You have a long list of things to do during spring cleaning when your energy levels are up, and there’s extra sunlight to make the tasks enjoyable. While your actual spring-cleaning checklist may vary, it should entail freshening up those things you don’t usually get to during routine cleaning. Examples include:

• Washing the windows inside and out
• Vacuuming the curtains and upholstery
• Dusting the light fixtures, inside and outside
• Disinfecting the cabinet hardware, light switches, and stair rail.
• Cleaning out the dryer vent
• Pressure-washing the walkway and replacing damaged bricks or pavers
• Sprucing up the front door
• Cleaning the gutters

As a tip, ensure you first dust and vacuum the house. Sweeping should come last so that you pick up whatever falls off.

Check the Condition of the HVAC Systems

The HVAC system should be in perfect condition for summer, so you want to do some maintenance in advance to prepare your home. Summer is the prime time for all seasonal allergies, and the air filter should be clean and ready to go. You can check the type of filter you have and the last time you swapped it to determine if it’s time for a complete replacement. Most air filters need a replacement every 90 days.

Other pre-summer HVAC maintenance steps include ensuring the visible areas around the indoor and outdoor components of the system are free from debris and clutter. As a tip, leave about two feet of free space around each element. Remember to switch off the water to the furnace humidifier until fall, when you’ll switch it back on.

Inspect the Drainage System

If you have a large house, it’s understandable that it’s common to overlook minor issues. You probably haven’t checked the drainage system in a long while, and this is the perfect time to do so. To prepare your home, inspect it for any leakages and have the flaws repaired in good time. Enlist professional assistance to get rid of blocked water pipes and other nuances in the house. Drainage issues can become hazardous if left unattended for a long time.

Rotate the Ceiling Fans Counterclockwise

Running your ceiling fans counterclockwise allows them to push down cool air instead of vice versa. When you rotate them in this direction, you’ll draw moisture out of the air, which is crucial if you live in high humidity areas.

It’s generally recommendable to run your fans counterclockwise when running the air conditioning unit. Doing so is more efficient in cooling the home, including turning the AC a few degrees up. Keep the fans running at low speed for a comfortable downdraft to redistribute cool air throughout the room.

Inspect the Roof

A quick look at the roof can reveal problems that may have begun in the winter. Take steps to repair them before they get out of hand. Misaligned, missing, or cracked shingles are problems that can let water in, leading to more problems. You also must check the flashing for rust and inspect the caulk for cracks.

Final Thoughts

Ready or not, summer is on its way. These tips and tricks will enable you to get ahead of the game and prepare your home for the changing season. With only a few more days remaining, ensure you get started by May 1st to remain ahead of the game!

Click the link here to return to The W Disclosure Newsletter.

Happy couple buying new home and receiving house keys form real estate agent.

Click this link to return to The W Disclosure newsletter.

You can take advantage of significant tax credits and deductions when you own a home. The Internal Revenue Service (IRS) offers numerous tax breaks to incentivize homeownership. When you own a home, you’re able to write off a huge chunk of your tax liability and get thousands of dollars in tax deductions when it’s tax season.

However, there is a catch. If you’re not aware of the tax credits and deductions offered by the IRS when preparing to file your taxes, you’ll not be able to minimize your taxable income and maximize your tax benefits. That’s why it’s essential for you as a homeowner to familiarize yourself with the various tax credits and deductions you qualify for.

How Home Tax Deductions Work

A tax deduction is a benefit that helps a taxpayer to reduce the amount of tax they owe. Once you own your home, you can take advantage of tax credits and deductions to lower your tax bill. How much money you’ll be able to save on your tax bill this season will be determined by whether you choose to go with a standardized tax deduction or itemize the various tax deductions you qualify for.

When applied, both tax deductions will save money on your taxes. The difference is that, with a standardized deduction, the amount taken from your total taxes is fixed. In contrast, an itemized tax deduction allows you to itemize all the tax deductions you qualify for. It makes financial sense only to itemize your deductions when their sum is higher than the standard deduction.

There are a lot of advantages to owning a home, especially when it comes to your taxes. Keep reading to learn how owning a home might give you the break you need every April 15th.

Some Of the Tax Deductions A Homeowner Can Capitalize on

1. Mortgage Interest Deduction

If you are an individual taxpayer or a married couple, you can claim the interest paid on the first $750,000 of your mortgage debt. Once you receive a Form 1098 detailing the interest you paid in the previous year from your lender, you’ll deduct the amount on line 8a of the 2022  Schedule A Form 1040.

2. Capital Gains from Your Home Sale

You won’t have to pay taxes on all or part of the capital gain you make when selling your house. If you sell your home, the capital gains up to $500,000 if you’re married filing jointly and $250,000, if you’re single, are tax-free. The house must have been your primary residence for two of the five years running up to your sale date for you to qualify for this perk.

3. Home Office Expense Deduction

If you’re self-employed or work at home, you may qualify for the home office expense deduction. You can claim this deduction if you use part of your home regularly and exclusively as your primary place of business. Passing the test for this deduction saves you money on your tax bill since part of your insurance costs, utility bills, and other home expenses are deducted against your business income.

4. Mortgage Insurance Premium Deduction

If you’re still paying mortgage insurance as part of your monthly mortgage payment, you may be able to deduct your mortgage insurance payments from your taxable income. If your gross income is less than $100,000 a year, you will be able to deduct the cost of mortgage insurance off of your tax bill. If you’re married and file separately, your limit is $50,000.

5. Deductions For Energy Efficient Upgrades

Making energy-efficient home improvements could reduce your tax bill. This incentive applies to alternative energy improvements made to your homes, such as installing solar panels, solar water heaters and geothermal heat pumps. The tax credit amount received is based on when you installed the items.

6. SALT Deductions

The deduction for state and local taxes (SALT) allows homeowners to deduct certain taxes paid to state and local governments, including property taxes. If you itemize SALT deductions on your federal return, you’ll pay less in federal taxes by deducting the amount you spent on qualifying state and local taxes. The deductible amount is capped at $10,000 for single taxpayers and $5,000 for married couples filing separately.

7. Mortgage Points Deduction

Another tax benefit of owning a home is the ability to deduct mortgage points you paid upfront when closing on your home purchase. The mortgage points you paid to your lender in a bid to lower the interest rate on your loan are fully deductible in the year you pay them. Capitalize on these tax deductions.

8. Standard Deduction

Look closely at the standard deduction allowed by the IRS when considering the tax deductions available to you as a homeowner. If you opt for the standard deduction, you’ll agree to have a set amount of money deducted from your taxable income. With the standard deduction, you won’t itemize your deductions. This year, $12,950 is the standard deduction for singles and married taxpayers filing separately. For heads of household, the amount is $19,400, while $25,900 is the standard deduction for married couples filing jointly.

Final Word

Owning a home is a sure way of reducing the amount you pay in income taxes each year. Consider itemizing your deductions if you qualify for deductions higher than the standard deduction amount for your tax filing status. If the standard deduction is higher than your itemized deductions, the standard deduction makes more sense.

Click the link here to return to The W Disclosure Newsletter.

Young couple buying a new house

Click this link to return to The W Disclosure newsletter.

As real estate prices rise, many renters are asking the question, “Is this the right time to buy a home, or should I keep renting?” Buying property may seem daunting, both from a cost and commitment perspective, but there are many reasons to do so, even in a competitive marketplace. While it may not be appropriate for everyone, homeownership is a great opportunity that should be strongly considered by anyone stuck in the renting cycle.  Here are some of the reasons why buying a home and escaping rental living could be in your best interest.

 1. Buying a home is an investment

Many people look at mortgage payment calculators and see thousands of dollars pouring out of their pockets in order to secure a place to live. But each month you own your home and pay your mortgage, you are creating equity which can be used in several different ways. Aside from huge lending and credit benefits, money paid into a mortgage will come back to the owner the day they decide to sell, along with any profit from increased valuation on the property. Granted, there are significant interest payments required on a mortgage, but no matter the rate, it’s still exponentially better than 100% of your monthly payment going directly to a landlord.

2. Ownership creates stability

Anyone who has ever rented understands the stress involved with living in uncertain conditions. Renters perpetually face a situation where lease terms and conditions hang over their heads, and they need to plan ahead for the worst-case scenario of the landlord selling the property. With home ownership, there is never a concern about how long the property can be occupied, or who is allowed to live there. Another benefit of this stability is the freedom to alter the property as desired. Want to buy a dog? Expand a bathroom? Move a shed? When you own your home, these are all things that can happen without consultation with a landlord.

3. Mortgage rates are historically low, but may start rising again soon.

Mortgage interest rates are a very important part of homeownership. Over the term of a mortgage, a fraction of a percent can equal thousands of dollars in interest paid to the lender. Even with a recent surge in rates, the average 30-year fixed rate is still hovering near all-time lows. Due to this historical dip, it can be expected that rates will rise in the short to medium-term future, which will cost owners significantly more in interest payments.

Taking advantage of low-interest rates is a great way to maximize value in a purchase, and it is highly recommended that potential owners seize this opportunity while they can. 

4. Tax breaks

There are a number of ways homeowners can use the purchase of a home to their advantage when it comes to taxes. From borrowing from retirement funds to make a down payment, to deductions and credits on mortgage and interest payments, to home improvement credits, the tax system creates several ways for homeowners to benefit from their homes.

As an example, a couple buying a $500,000 home could withdraw $20,000 from their IRA’s without penalty to put towards a down payment. Once the house is purchased, any interest paid on the mortgage can be deducted, and depending on the couples’ incomes, a credit would also be applied.

5. Generate revenue by renting

After a lifetime of renting, wouldn’t it be nice to flip the script and be the one getting paid every month? Whether it be a basement suite, Airbnb, or long-term rental, there are numerous ways to profit from a property. An owner can use their home to create a reliable and lucrative revenue stream from short, partial, or long-term renting, all while creating equity for themselves.

 6. It begins a legacy

Financial reasons aside, purchasing a home can be the beginning of a family’s life story. Homes are a part of people’s history, and can stay within a family for generations to come. We’ve discussed all the monetary reasons why owning a home is a benefit, but no one can put a price on building a life in a place that you love.

Click the link here to return to The W Disclosure Newsletter.