< PreviousGET “SMART” WHEN FLIPPING A HOME Creative Living 54 Digest.indd 15/24/19 2:21 PMFlipping an older home can be a great money maker and financial decision. With a little vision and some sweat equity, you can turn a once-forgotten property into a modem home with massive potential for profit. But flippers will tell you that it’s the upgrades that make the biggest difference. Trading linoleum for tile can make an outdated bathroom chic again. Painting cabinets and adding a backsplash can make a run-down kitchen feel like a chef’s dream. Even investing thousands of dollars to replace outdated appliances can be a worthwhile investment, helping a house with old bones compete with the newly built property just down the road. In addition to those upgrades, adding the right smart home technology to your next flip can make a massive difference with certain home buyers. The best part is that these upgrades are both inexpensive and easy to pull off. Here are three upgrades to consider: Install Smart Thermostats You might not think that a thermostat would be a big deal, but the thermostats say a lot about the property. An old, outdated thermostat can be an eyesore and a reminder of a home’s advanced age, but a smart thermostat tells potential buyers that the HVAC system is up to modern standards and has been evaluated as part of a renovation. Plus, the fact that homeowners can easily manage and control the system on their smartphone is an attractive feature. Environmentally- conscious buyers are impressed by the smart thermostat’s energy efficiency. Smart Lighting Can Change the Feel of a Space Another key upgrade to consider is perhaps one of the easiest ones to make: the installation of a few smart bulbs or a smart lighting system. Lighting can completely change the feel of a room, and today’s smart lighting systems offer a nearly limitless array of colors, dimness settings and light fixtures. Security Systems Provide a Sense of Safety Modern homebuyers are concerned about security, so adding a smart security system to your property is another great upgrade that will cater directly to your buyers’ needs. Many older security systems require yearly contracts and extensive wiring. Today’s WiFi-enabled cameras and battery-powered security products are both affordable and easy to install. All you need is a few cameras and motion sensors to get started, and they’re easily demonstratable to potential buyers. It doesn’t take much to convert an older home into a modern one. Smart upgrades like these may seem like a small investment, but they can make a massive impact on the decision- making of potential buyers. Creative Living 54 Digest.indd 25/24/19 2:21 PMMoney-Saving Tax Benefits for New & Long-Term Homeowners Buying and owning a home is not only an important step in life, it’s an area rich with benefits when it comes to filing an annual tax return. Jackson Hewitt Tax Service reminds tax filers not to forget or overlook the many tax credits and deductions that relate to home ownership. “From the special tax credit for first-time home buyers, to the numerous tax incentives for making energy-efficient changes to a home, there are multiple reasons for taxpayers to speak with a tax preparer and ensure they take advantage of all home ownership-related credits and deductions for which they are eligible,” said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. Steber reminds homeowners to keep the following tax benefits top-of-mind as they gather their tax-related documents to have their tax return prepared: First Time Home Buyer Credit: The IRS allows first-time home buyers to withdraw up to $10,000 from their traditional IRA (and even Roth IRAs) penalty-free to help with the purchase of the home. You can also borrow half of your 401(k) balance up to $50,000 for the purchase of a home. But, the interest you pay on that 401(k) loan, unlike a mortgage loan, isn’t tax-deductible. New Home Energy Credits: Taxpayers can receive a credit for making their homes more energy efficient by caulking doors and windows, adding new insulation to attics, buying an energy-efficient hot water heater or air conditioner and more. The credit amount is a total of 30% of the cost of qualifying improvements, up to $1,500. Tax Deductions and Buying a Home: Most of the expenses incurred when buying a home are not deductible. Yet there are certain closing costs (such as brokers’ commissions, attorney’s fees, recording fees, abstract fees, surveys, title searches, owner’s title insurance policy and transfer taxes) that are added to the basis of your residence that are important to keep track of. When you sell, the basis is needed to calculate any gain or loss. Real Estate Taxes: You may deduct real estate taxes in the year paid. They are generally reported on Form 1098 (Mortgage Interest Statement) or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are usually included on Form 1098, but you can get the total paid at your local tax assessor’s office if they are not reported on your Form 1098.2018it’s cold outside As outdoor temperatures drop and home-heating costs are on the rise, it’s now more important than ever to make sure your home is properly prepped for win- ter. Here are some cold weather tips and easy DIY projects to help save money and energy this winter: 5 Ways to Save Energy When Less obvious places that can waste energy are electrical switches and outlets. You can easily prevent air from sneak- ing in and out by placing pre-cut, inexpensive plastic foam insulation sheets behind switch and outlet covers. Check your home’s unheated areas for leaks in heating ducts, including your basement, attic and garage. If you find leaks, they can be easily sealed with plastic caulks or polyurethane foam sealants. These low-cost products are designed to fill cracks and crevices while keeping away moisture and mildew. Switches, Outlets & Ducts Although a fireplace is meant to heat a room, it often allows cold air to enter a house. An inexpensive product known as a “chimney pillow” or “fireplace plug” can reduce airflow when the fireplace isn’t being used. After installation, the pillow’s inflation tube hangs down into the fireplace as a reminder to remove it before lighting a fire in your living room. Fireplace First, check to see if there is any missing or damaged insulation that can be readily replaced. A lower-cost alternative to block unwanted airflow is to place sheets of foam polystyrene plastic on top of existing insulation. You can also keep the cold air in the attic and out of the living area by installing some plastic foam weather stripping around the attic door. Make sure your home is properly insulated by inspecting doors, windows, and apply caulk or weather-stripping where neces- sary to keep cold air out. You should also close drapes, blinds and garage doors to preserve heat and prevent cold air from sneaking inside. There is a wide variety of low-cost weather stripping you can purchase that helps trap air, providing a barrier between indoors and out. Windows & Doors Follow these energy and money saving tips for a cozy home this winter and all year round. Many homes have areas that are not properly sealed, letting warm air escape your home and allowing cold air to sneak in. Helping to seal these leaks in problem areas can provide a quick and easy return on time and money invested. AtticRBFYWQV RBFYTQH RBFWWMR Text Any R-Code On These Photos to 52187 For More Information & Instant Viewing On Your Mobile Phone 16201.31.14.016.qxp_FILLER2 11/2/20 11:18 AM Page 1Next >