As I stated in my last blog post, fall/winter doesn't have to mean a flatline for sellers. Getting your home in the best shape possible can get it sold this time of year. But what if you could make some improvements and pay less taxes for your efforts?
It's a win-win situation for homeowners. Here is some information I found in an article from Klipinger.com that explains how it works.
"Upgrade Your Home
This is your last chance to claim a tax credit for making energy-efficient improvements to your principal residence. The home-energy tax credit expires at the end of this year.
It is worth 10% of the cost of new windows, doors, skylights, insulation, and heating and air conditioning systems, up to a maximum $500 credit (but no more than $200 can be allocated to new windows).
You must install the upgrades by December 31 in order to claim the credit, but you can't claim it for 2011 if you already took advantage of $500 or more of energy tax credits in previous years.
An even bigger credit is available to homeowners who install renewable-energy equipment, such as geothermal heat pumps, solar panels and small wind turbines, in their primary residence or vacation home by the end of the year. You can claim a credit for 30% of the cost, including installation, with no limit. This credit is good through 2016."
The article also pointed out another way to save on your taxes and by doing so help out a family member. There are many people out there who have an excellent credit score but when it comes to purchasing a home they don't have the money needed to come up with a down payment. You can actually gift funds that can help ease this financial dilemma.
"Make Your Family Happy
The clock is ticking on the very generous estate and gift tax exclusions that allow you to give up to $13,000 this year to any number of recipients -- and a total of $5 million over your lifetime -- without owing any federal gift tax. The $5 million lifetime exclusion expires at the end of 2012, and Congress may decide to reset it at a lower level.
While the $5 million lifetime exclusion is irrelevant for all but the wealthiest Americans, your annual $13,000 gift exclusion disappears forever if you fail to use it by the end of each year. A husband and wife can jointly give away up to $26,000 per recipient this year tax-free (but you will have to file gift tax Form 709 to make a record of your joint gift, even though no gift tax is due.)
Say you want to help your newly married son and his wife buy a house. You and your husband could give the newlyweds up to $52,000 this year tax-free -- $26,000 each to your son and your daughter-in-law. And if you're feeling really generous, you could do it all over again on January 1, 2012."
If possible don't miss out on this wonderful opportunity to save some money while improving your home. Also see if you can't help a son or daughter become a homeowner. What a wonderful holiday gift that would make!
Thanks for stopping by my blog. Please feel free to comment and if you are looking to buy, sell or invest in real estate please give me a call or send me an email. I will respond promptly.
Don't forget I also have a dynamic co-listing partner, Meredith Singer and we have a fantastic array of media for you to check out as well.
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Have a wonderful and safe holiday season!
Team M2-Meg Fullington and Meredith Singer
**The opinions in this blog are those of the writer only. Information is deemed reliable but is not guaranteed.
