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10 Home Projects that can Recoup Costs at Resale

by CAR

It sometimes is a hassle when it comes to home projects; using too much time, money, and energy. But the next time you are working on a home project, remember, in the long run this isn't just for your use, it is an investment. Improvements on homes bump up Resale prices! 

Top10HomeProjectstoRecoup

Attention Investors: New Rules for Deducting Home Improvements

by Real Team 360

Investment property owners and landlords know that tax deductions are a crucial component of making sure they maximize their returns. In January of 2014 the IRS in the U.S. implemented a somewhat complex distinction as to what constitutes a repair versus improvement.

Why does it matter? Well, repairs can be deducted in a single year. So if you have a $1,000 qualifying repair, you can deduct it at one time. If it's an improvement, however, the $1,000 worth of work may need to be depreciated over several years. (In some cases, more than 27 years!)

One useful test for understanding if a deduction can be taken in a single year is whether or not it falls outside of the "Betterment, Adaptation, or Restoration" assessment. If the work falls under these categories, they'll need to be depreciated, not deducted in a lump sum.

There are some subtle considerations for each case. For a detailed look at what constitutes a betterment, adaptation, or restoration, take a look at this handy article:

Repairs vs. Improvements: Complicated New IRS Rules

http://www.nolo.com/legal-encyclopedia/repairs-vs-improvements-how-tax-deductions-differ-landlords.html

Granted, this blog post shouldn’t be taken in lieu of the advice of a trained tax professional, but I hope you find it helpful as it pertains to your investments.

 Looking for a new investment property? We can be of great assistance when it comes to identifying overlooked opportunities in the market. Get in touch today and let’s discuss what might fit your criteria: Call us at 805.238.1555 or email one of us at Scott@realteam360.com or Brian@realteam360.com.

3 Things Buyers Forget to Check During a Home Search

by Real Team 360

Think you’ve found the perfect home? Think again. There are three little details which can turn an ideal house into the world’s most annoying location. Before you make your offer, take into account these three small, but surprisingly important details:

#1: “Let me call you back on my landline.” Does your future dream home have cell reception? Check your signal when you’re on the property and see if it has dead spots, poor/limited data connections, or flat out “NO SERVICE” messages. This is especially important if you telecommute or had planned on skipping a landline entirely. While you can try and live on VoIP connections, WiFi, and other options, the hassle of a hole in cell coverage can wear on you.

#2: “Wow, the commute is longer than I thought.” It’s a sunny Saturday afternoon, and for kicks you decide to see how long the drive is from your potential dream home to your office. Doesn’t seem too bad, does it? Now try it during rush hour on a Monday (in bad weather if you can swing it). You might be surprised how school zones, backed-up interstate ramps, new construction, and peak transit schedules extend that commute. This goes for urban commutes too, so even if you don’t drive to work you’ll want to evaluate the commute in real-world conditions.

#3: “What do you mean we’re outside your delivery zone?” The neighborhood was gentrifying. The home price was within your range. Now you find out that there’s no such thing as food delivery to your new address! Don’t assume that just because you’ve seen pizza delivery cars whipping through the ‘hood means they stop there. Restaurant delivery areas are often drawn like congressional districts, so if you can, check out what the local food delivery options are like ahead of time. Look up a few places, call them, and verify they deliver to your address. (Asking the average delivery time is a good idea, too.)

Markets can be super competitive, but remember that you’re planning on living in this new house for a considerable amount of time. (Most people would tell you at least 5 - 7 years.) Perhaps your priorities don’t include these three details, but they might to other buyers when you’re ready to sell. Time changes things, but ask yourself: Do you want to put up with the annoyances for two years? Even one?

Displaying blog entries 1-3 of 3

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Real Team 360
RE/MAX Parkside Real Estate - BRE #01421338
1213 Vine Street
Paso Robles CA 93446
Office: (805) 238-1555