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How Long To Keep Tax Records

by Terry Sullivan - Lyons-Sullivan Realty

How Long to Keep Tax Records

By: Dona DeZube

Published: August 22, 2016

Here's a checklist to help you decide what tax and home records to keep.

 

Unless you’re living in the 123-room Spelling Manor, you probably don’t have space to store massive amounts of tax and insurance paperwork, warranties, and repair receipts related to your home.

But you’ll definitely want your paperwork at hand if you have to prove you deserved a tax deduction, file an insurance claim, or figure out if your busted oven is still under warranty.

To help you prioritize your paperwork, we've created a hand "How Long to Keep It" home records checklist. 

First, a little background on IRS rules, which informed some of our charts:

  • The IRS says you should keep tax returns and the paperwork supporting them for at least three years after you file the return -- the amount of time the IRS has to audit you. So that’s how long we advise in our charts.
  • Check with your state about state income tax, though. Some make you keep tax records a really long time: In Ohio, it’s 10 years.
  • The IRS can also ask for records up to six years after a filing if they suspect someone failed to report 25% or more of his gross income. And the agency never closes the door on an audit if it suspects fraud. Just sayin'.

Home Sale Records

HOME SALE RECORDS
Document How Long to Keep It
Home sale closing documents, including HUD-1 settlement sheet As long as you own the property + 3 years

Deed to the house

As long as you own the property
Builder's warranty or service contract for new home  Until the warranty period ends
Community/condo association covenants, codes, restrictions (CC&Rs) As long as you own the property
Receipts for capital improvements As long as you own the property + 3 years
Section 1031 (like-kind exchange) sale records for both your old and new properties, including HUD-1 settlement sheet As long as you own the property + 3 years
Mortgage payoff statements (certificate of satisfaction or lien release) Forever, just in case a lender says, "Hey, you still owe us money."

Why you need these docs: You use home sale closing documents, receipts for capital improvements, and like-kind exchange records to calculate and document your profit (gain) when you sell your home. Your deed and mortgage payoff statements prove you own your home and have paid off your mortgage, respectively. Your builder’s warranty or contract is important if you file a claim. And sooner or later you’ll need to check the CC&R rules in your condo or community association.

Annual Tax Deductions

ANNUAL TAX DEDUCTIONS
Document How Long to Keep It
Property tax payment (tax bill + canceled check or bank statement showing check was cashed) 3 years after the due date of the return showing the deduction
Year-end mortgage statements 3 years after the due date of the return showing the deduction
PMI payment (monthly bills + canceled check or bank statements showing check was cashed) 3 years after the due date of the return showing the deduction
Residential energy tax credit* receipts 3 years after the due date of the return on which the credit is claimed (including carryforwards**)

Why you need these docs: To document you’re eligible for a deduction or tax credit.

*Energy tax credits ($500 lifetime cap) for such things as energy-efficient windows, doors, heating and cooling systems, insulation, and more.

**Tax credits that you carry forward from one year to a future year, such as when you don’t have enough tax liability to offset the entire amount of the credit. (You can’t deduct more than you earn.) Only certain tax credits can be carried forward. Check with your tax pro about your particular circumstances.

Insurance and Warranties

INSURANCE AND WARRANTIES
Document How Long to Keep It
Home repair receipts Until warranty expires
Inventory of household possessions Forever (Remember to make updates.)
Homeowners insurance policies Until you receive the next year's policy
Service contracts and warranties As long as you have the item being warrantied

Why you need these docs: To file a claim or see what your policy or warranty covers.

Investment Real Estate Deductions

INVESTMENT (LANDLORD) REAL ESTATE DEDUCTIONS
Document How Long to Keep It
Appraisal or valuation used to calculate depreciation As long as you own the property + 3 years
Receipts for capital expenses, such as an addition or improvements As long as you own the property + 3 years
Receipts for repairs and other expenses 3 years after the due date of the return showing the deduction
Landlord's insurance payment receipt (canceled check or bank statement showing check was cashed) 3 years after the due date showing the deduction
Landlord's insurance policy Until you receive the next year's policy
Partnership or LLC agreements for real estate investments As long as the partnership or LLC exists
Landlord insurance receipts (canceled check or bank statement showing check was cashed) 3 years after you deduct the expense

Why you need these docs: For the most part, to prove your eligibility to deduct the expense. You’ll also need receipts for capital expenditures to calculate your gain or loss when you sell the property. Landlord’s insurance and partnership agreements are important references.

Miscellaneous Records

MISCELLANEOUS RECORDS
Document How Long to Keep It
Wills and property trusts Until updated
Date-of-death home value record for inherited home, and any rules for heirs' use of home As long as you or spouse owns the home + 3 years
Original owners' purchase documents (sales contract, deed) for home given to you as a gift As long as you or spouse owns the home + 3 years
Divorce decree with home sale clause As long as you or spouse owns the home + 3 years
Employment records for live-in help (W-2s, W-4s, pay and benefits statements) 4 years after you make (or owe) payroll tax payments

Why you need these docs: Most are needed to calculate capital gains when you sell. Employment records help prove deductions.

Organizing Your Home Records

Because paper, such as receipts, fades with time and takes up space, consider scanning and storing your documents on a flash drive, an external hard drive, or a cloud-based remote server. Even better, save your documents to at least two of these places.

Digital copies are OK with the IRS as long as they’re identical to the originals and contain all the accurate information that was in the original receipts. You must be able to produce a hard copy if the IRS asks for one.

Tip: Tax season and year’s end are good times to purge files and toss what you no longer need; that's often when the spirit of organization moves us.

When you do finally toss out your home-related paperwork, use a shredder. Throwing away intact documents with personal financial information puts you at risk for identity theft.

This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.

Attic Bedroom Renovation

by Terry Sullivan - Lyons-Sullivan Realty

Evaluate Your House for an Attic Bedroom Renovation

By: Benjamin Allen

Published: December 3, 2010

An attic bedroom remodel is an easy way to increase living space and avoid many of the zoning restrictions attached to adding on.

 

An attic bedroom exploits roof space previously devoted to high school yearbooks and nesting sparrows. Reclaiming the space under your roof also avoids many zoning and easement concerns -- common chores when adding onto a house.

Reclaiming the space under your roof also avoids many zoning and easement concerns -- common chores when adding onto a house.

Attic Bedroom Costs and Value

Converting an attic to a bedroom yields a modest return on your investment. According to "2015 Remodeling Impact Report" from the NATIONAL ASSOCIATION OF REALTORS®, an attic bedroom conversion that includes a small bath has a national median cost of $65,000 and retains 61% of its value if you should decide to sell your house.

Nevertheless, most homeowners who undertook an attic conversion have no regrets -- the project gets a Joy Score of 9.4, a rating based on those who said they were happy or satisfied with their remodeling, with 10 being the highest rating and 1 the lowest.

But just because adding an attic bedroom under your rafters is a smart money move, it may not be practical or even doable. To determine if an attic bedroom is right for you, consider:

  • Building codes
  • Support structures
  • Electrical, HVAC, and plumbing systems
  • Access

Are Building Codes on Your Side?

Although home owners often consider building codes to be obstacles, safety and durability are the real missions of codes. Because local codes vary, your building inspector can provide a list of applicable codes and required inspections for your new attic bedroom.

  • Ceiling codes: Generally 7 feet 6 inches high over a minimum floor area of 70 square feet. If you have an attic shorter than required by code, you won’t be able to remodel it into living space.
  • Joist codes: Ask an architect or structural engineer if your attic floor joists meet local codes and can support the additional weight of a remodeled space. Also ask if the rafters can support drywall, lighting, electrical, plumbing, and HVAC system components. Consultation costs $50 to $150 per hour.
  • Egress codes: Regular bedroom egress codes typically require at least two exits -- a doorway and usually a window. An attic bedroom requires both a window and a staircase to the level beneath. Having an escape ladder in clear view is always a good idea.

Support Systems

The structural framing beneath your roof -- rafters or trusses -- will determine if you can add an attic bedroom and what it might look like.

Rafters, internal beams extending from the peak of the roof to its eaves, provide a center open space that you can readily remodel.

Trusses, W-shaped framing that supports the roof, make things harder. To achieve the attic bedroom you want, you might have to cut through, shore up, and otherwise alter the very structures that keep your roof above your head. It may not be practical. Consult a structural engineer and/or a licensed architect to determine if modifying trusses is a good idea.

Extending Systems to Your Attic Bedroom

  • Electrical: Consult a licensed electrician to determine if your electric panel has room for additional breakers and can handle the increased load of an attic bedroom. If your system can handle the additional demands, running wires to the attic is relatively simple.
  • Plumbing: Cut costs by locating the new bathroom close to the main stack—large pipes that carry wastewater to your sewer or septic tank. This reduces the length of pipe you’ll run between sink-shower-toilet drains and the stack.
  • HVAC: An HVAC specialist will tell you if your forced air blower can move enough air to both heat and cool your attic bedroom. If it doesn’t, electric baseboard heating and a window air conditioner may suffice. Be sure your electrician knows your heating and cooling plans to determine the total electrical requirements of your new attic bedroom.

Gaining Access

An attic bedroom requires a standard staircase to meet code; a ladder is insufficient. Adding a staircase will take up space in a room below the attic, so consider converting a closet. You may be able to regain that storage space by using space under the new staircase.

Staircases with straight runs are easiest to construct but take up the greatest area, just over 40 square feet. Depending on materials and finishing touches, such as newel posts and hardware, costs can range from $500 to $3,000.

Spiral staircases take up the least area but are typically more expensive. Prices for a wood or metal-wood staircase kit ranges from $2,000 to $6,000; installation ranges from $600 to $1,200.

If you’re short on inside space, exterior access -- a staircase outside the house -- may be a solution. Check with your zoning department, which may interpret an outside staircase as a sign of a multi-unit dwelling, which may not meet neighborhood zoning requirements.

Related: Bedroom Attic Remodel: Return on Investment

80-10-10 Mortgages

by Terry Sullivan - Lyons-Sullivan Realty

During the banking crisis in the Great Recession, certain types of mortgages were unavailable that are once again being offered. Fortunately, the 80-10-10 mortgage is one of those making a reappearance and it can save borrowers a considerable amount of money. 80-10-10.png

The objective of an 80-10-10 mortgage is to avoid the expense of mortgage insurance for buyers wanting a 90% loan. A buyer can obtain an 80% first mortgage and a 10% second mortgage with a 10% down payment and not be required to have private mortgage insurance.

For example, a buyer could put $30,000 down on a home priced at $300,000 and get an 80% first mortgage without mortgage insurance. The borrower could get a second mortgage, either through the same lender or a third party.

In the example, the 80-10-10 would save a buyer $193.71 per month which can be a considerable amount of money over a ten-year period. The interest rate on the second loan will be higher than the first because there is more risk.

Helping buyers make better choices is a valuable service real estate professionals can provide. Having the right tools and information can make the decisions easier to understand. Using an 80-10-10 calculator, you can see what the savings might be for your situation.

7 Smart Strategies for Bathroom Remodeling

by Terry Sullivan - Lyons-Sullivan Realty

By: John Riha

Published: March 4, 2011

Here’s how to get the bathroom of your dreams without making your budget a nightmare.

 

You dream about a bathroom that’s high on comfort and personal style, but you also want materials, fixtures, and amenities with lasting value. Wake up! You can have both.

A midrange bathroom remodel is a solid investment, according to the "2015 Remodeling Impact Report" from the NATIONAL ASSOCIATION OF REALTORS®. A bath remodel with a national median cost of $26,000 will recover about 58% of those costs when it’s time to sell your home.

Regardless of payback potential, you'll probably be glad you went ahead and updated your bathroom. Homeowners polled for the "Report" gave their bathroom renovation a Joy Score of 9.3 -- a rating based on those who said they were happy or satisfied with their project, with 10 being the highest rating and 1 the lowest.

1. Stick to a Plan

A bathroom remodel is no place for improvisation. Before ripping out the first tile, think hard about how you will use the space, what materials and fixtures you want, and how much you’re willing to spend.

The National Kitchen and Bath Association (NKBA) recommends spending up to six months evaluating and planning before beginning work. That way, you have a roadmap that will guide decisions, even the ones made under remodeling stress. Once work has begun -- a process that averages two to three months -- resist changing your mind. Work stoppages and alterations add costs. Some contractors include clauses in their contracts that specify premium prices for changing original plans.

If planning isn’t your strong suit, hire a designer. In addition to adding style and efficiency, a professional designer makes sure contractors and installers are scheduled in an orderly fashion. A pro charges $100 to $200 per hour, and spends 10 to 30 hours on a bathroom project.

2. Keep the Same Footprint

You can afford that Italian tile you love if you can live with the total square footage you already have. 

Keeping the same footprint, and locating new plumbing fixtures near existing plumbing pipes, saves demolition and reconstruction dollars. You’ll also cut down on the dust and debris that make remodeling so hard to live with.

Make the most of the space you have. Glass doors on showers and tubs open up the area. A pedestal sink takes up less room than a vanity. If you miss the storage, replace a mirror with a deep medicine cabinet.

3. Make Lighting a Priority

Multiple shower heads and radiant heat floors are fabulous adds to a bathroom remodel. But few items make a bathroom more satisfying than lighting designed for everyday grooming. You can install lighting for a fraction of the cost of pricier amenities.

Well-designed bathroom task lighting surrounds vanity mirrors and eliminates shadows on faces: You look better already. The scheme includes two ceiling- or soffit-mounted fixtures, and side fixtures or sconces distributed vertically across 24 inches (to account for people of various heights). Four-bulb lighting fixtures work well for side lighting.

Today, shopping for bulbs means paying attention to lumens, the amount of light you get from a bulb -- i.e., brightness. For these bathroom task areas, the Lighting Research Center recommends:

  • Toilet: 45 lumens
  • Sink: 450 lumens
  • Vanity: 1,680 lumens

4. Clear the Air

Bathroom ventilation systems may be out of sight, but they shouldn’t be out of mind during a bathroom remodel.

Bathroom ventilation is essential for removing excess humidity that fogs mirrors, makes bathroom floors slippery, and contributes to the growth of mildew and mold. Controlling mold and humidity is especially important for maintaining healthy indoor air quality and protecting the value of your home -- mold remediation is expensive, and excess humidity can damage cabinets and painted finishes.

A bathroom vent and water closet fan should exhaust air to the outside -- not simply to the space between ceiling joists. Better models have whisper-quiet exhaust fans and humidity-controlled switches that activate when a sensor detects excess moisture in the air.

Related: Everything You Need to Know about Exhaust Fans

5. Think Storage

Bathroom storage is a challenge: By the time you’ve installed the toilet, shower, and sink, there’s often little space left to store towels, toilet paper, and hair and body products. Here are some ways to find storage in hidden places.

  • Think vertically: Upper wall space in a bathroom is often underused. Freestanding, multi-tiered shelf units designed to fit over toilet tanks turn unused wall area into found storage. Spaces between wall studs create attractive and useful niches for holding soaps and toiletries. Install shelves over towel bars to use blank wall space.
  • Think moveable: Inexpensive woven baskets set on the floor are stylish towel holders. A floor-stand coat rack holds wet towels, bath robes, and clothes.
  • Think utility: Adding a slide-out tray to vanity cabinet compartments provides full access to stored items and prevents lesser-used items from being lost or forgotten.

6. Contribute Sweat Equity

Shave labor costs by doing some work yourself. Tell your contractor which projects you’ll handle, so there are no misunderstandings later.

Some easy DIY projects:

  • Install window and baseboard trim; save $250.
  • Paint walls and trim, 200 square feet; save $200.
  • Install toilet; save $150.
  • Install towel bars and shelves; save $20 each.

7. Choose Low-Cost Design for High Visual Impact

A “soft scheme” adds visual zest to your bathroom, but doesn’t create a one-of-a-kind look that might scare away future buyers.

Soft schemes employ neutral colors for permanent fixtures and surfaces, then add pizzazz with items that are easily changed, such as shower curtains, window treatments, towels, throw rugs, and wall colors. These relatively low-cost decorative touches provide tons of personality but are easy to redo whenever you want.

7 Smart Strategies for Kitchen Remodeling

by Terry Sullivan - Lyons-Sullivan Realty

Homeowners spend more money on kitchen remodeling than on any other home improvement project. And with good reason: Kitchens are the hub of home life and a source of pride.

A significant portion of kitchen remodeling costs may be recovered by the value the project brings to your home. A complete kitchen renovation with a national median cost of $60,000 recovers about 67% of the initial project cost at the home’s resale, according to the "2015 Remodeling Impact Report" from the NATIONAL ASSOCIATION OF REALTORS®.

The project gets a big thumbs-up from homeowners, too. Those polled in the "Report" gave their new kitchen a Joy Score of 9.8 -- a rating based on those who said they were happy or satisfied with their remodeling, with 10 being the highest rating and 1 the lowest.

To maximize your return on investment, follow these seven strategies to keep you on budget and help you make smart choices.

1. Plan, Plan, Plan

Planning your kitchen remodel should take more time than the actual construction. If you plan well, the amount of time you’re inconvenienced by construction mayhem will be minimized. Plus, you’re more likely to stay on budget.

How much time should you spend planning? The National Kitchen and Bath Association recommends at least six months. That way, you won’t be tempted to change your mind during construction and create change orders, which will inflate construction costs and hurt your return on investment. 

Some tips on planning:

Study your existing kitchen: How wide is the doorway into your kitchen? It’s a common mistake many homeowners make: Buying the extra-large fridge only to find they can’t get it in the doorway. To avoid mistakes like this, create a drawing of your kitchen with measurements for doorways, walkways, counters, etc. And don’t forget height, too.

Think about traffic patterns: Work aisles should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.

Design with ergonomics in mind: Drawers or pull-out shelves in base cabinets; counter heights that can adjust up or down; a wall oven instead of a range: These are all features that make a kitchen accessible to everyone — and a pleasure to work in.

Plan for the unforeseeable: Even if you’ve planned down to the number of nails you’ll need in your remodel, expect the unexpected. Build in a little leeway for completing the remodel. Want it done by Thanksgiving? Then plan to be done before Halloween.

Choose all your fixtures and materials before starting: Contractors will be able to make more accurate bids, and you’ll lessen the risk of delays because of back orders.

Don’t be afraid to seek help: A professional designer can simplify your kitchen remodel. Pros help make style decisions, foresee potential problems, and schedule contractors. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the Same Footprint

Nothing will drive up the cost of a remodel faster than changing the location of plumbing pipes and electrical outlets, and knocking down walls. This is usually where unforeseen problems occur.

So if possible, keep appliances, water fixtures, and walls in the same location. Not only will you save on demolition and reconstruction costs, you’ll cut the amount of dust and debris your project generates.

3. Get Real About Appliances

It’s easy to get carried away when planning your new kitchen. A six-burner commercial-grade range and luxury-brand refrigerator may make eye-catching centerpieces, but they may not fit your cooking needs or lifestyle.

Appliances are essentially tools used to cook and store food. Your kitchen remodel shouldn’t be about the tools, but the design and functionality of the entire kitchen.

So unless you’re an exceptional cook who cooks a lot, concentrate your dollars on long-term features that add value, such as cabinets and flooring. 

Then choose appliances made by trusted brands that have high marks in online reviews and Consumer Reports.

4. Don’t Underestimate the Power of Lighting

Lighting can make a world of difference in a kitchen. It can make it look larger and brighter. And it will help you work safely and efficiently. You should have two different types of lighting in your kitchen: 

Task Lighting: Under-cabinet lighting should be on your must-do list, since cabinets create such dark work areas. And since you’re remodeling, there won’t be a better time to hard-wire your lights. (Here’s more about under-cabinet lights.) Plan for at least two fixtures per task area to eliminate shadows. Pendant lights are good for islands and other counters without low cabinets. Recessed lights and track lights work well over sinks and general prep areas with no cabinets overhead.

Ambient lighting: Flush-mounted ceiling fixtures, wall sconces, and track lights create overall lighting in your kitchen. Include dimmer switches to control intensity and mood.

Related: How to Choose the Best Bulb for the Job

5. Be Quality-Conscious

Functionality and durability should be top priorities during kitchen remodeling. Resist low-quality bargains, and choose products that combine low maintenance with long warranty periods. Solid-surface countertops, for instance, may cost a little more, but with the proper care, they’ll look great for a long time.

And if you’re planning on moving soon, products with substantial warranties are a selling advantage.

Related:

  • Kitchen Remodeling Decisions You'll Never Regret
  • White: The Savvy and Chic Kitchen Color Choice

6. Add Storage, Not Space

Storage will never go out of style, but if you’re sticking with the same footprint, here are a couple of ideas to add more: 

Install cabinets that reach the ceiling: They may cost more — and you might need a stepladder — but you’ll gain valuable storage space for Christmas platters and other once-a-year items. In addition, you won’t have to dust cabinet tops.

Hang it up: Mount small shelving units on unused wall areas and inside cabinet doors; hang stock pots and large skillets on a ceiling-mounted rack; and add hooks to the backs of closet doors for aprons, brooms, and mops.

Related: Storage Options that Pack More Space in Your Kitchen

7. Communicate Clearly With Your Remodelers

Establishing a good rapport with your project manager or construction team is essential for staying on budget. To keep the sweetness in your project:

Drop by the project during work hours: Your presence broadcasts your commitment to quality.

Establish a communication routine: Hang a message board on site where you and the project manager can leave daily communiqués. Give your email address and cell phone number to subs and team leaders.

Set house rules: Be clear about smoking, boom box noise levels, available bathrooms, and appropriate parking.

Be kind: Offer refreshments (a little hospitality can go a long way), give praise when warranted, and resist pestering them with conversation, jokes, and questions when they are working. They’ll work better when refreshed and allowed to concentrate on work.

Estate Planning

by Terry Sullivan - Lyons-Sullivan Realty

An estate plan is a collection of documents to ensure that your wishes are carried out because of death or incapacity to make decisions for yourself. Spouses, minor children, adult children, property and investments can all be factors that should motivate a person to undergo the process.12902925-250.jpg

Will – this document specifies the way a person wants to manage and distribute his/her assets after their death. When a person dies without a will, the laws of the state where the person resided will determine the distribution of the property.

Durable Power of Attorney – this document grants to a designated person the authority to act on behalf of the principal in in legal affairs should the principal become incapacitated. Among other things, this would allow the attorney-in-fact to buy and sell property on the behalf of the principal.

Healthcare Proxy – this document grants that a designated person can legally make healthcare decisions on behalf of the principal when they are incapable of making and executing specific decisions stated in the proxy.

Living Will – this document directs physicians with respect to life-prolonging medical treatments in case they become unable to communicate their decisions.

Hippa Release – this document allows heath care providers to release your health care information to a designated person. Otherwise, they are required by federal law to protect the privacy of your health information.

Letter of Instruction – This document contains information and instructions about a person’s wishes upon death. It is intended to offer details on whom to contact and where to find important documents about personal and financial matters.

Requirements of these documents can vary from state to state and legal advice should be obtained. If you need a current estimate of value on real estate that may be involved, usually a price opinion from a licensed real estate professional will suffice. It would be my privilege to assist you with this at no cost or obligation.

Tax Benefits of Home Ownership

by Terry Sullivan - Lyons-Sullivan Realty

U.S. taxpayers have enjoyed specific tax benefits for home ownership since personal income tax was introduced by the 16th amendment in 1913. While these benefits may not be the primary reason that motivates a person to buy a home, they are still tangible and not available to tenants.26005238-266.jpg

The exclusion of capital gains tax on the profit made from a home is unique from other investments and provides homeowners significant savings. Single taxpayers can exclude up to $250,000 gain and married taxpayers up to $500,000 gain. During the five-year period ending on the date of sale, a taxpayer must have: owned the home for at least two years; lived in the home as their main home for at least two years; and, ownership and use do not have to be continuous nor occur at the same time.

Gain on the sale of a principal residence in excess of the allowed exclusion are taxed at the lower long-term capital gain rate of the owner.

A homeowner may take the standard deduction or itemized deductions in any tax year based on which will create the largest deduction. Property taxes and qualified mortgage interest are allowable itemized deductions.

Qualified mortgage interest is acquisition debt plus home equity debt not to exceed the maximum amounts. Acquisition debt is the amount of debt incurred to buy, build or improve a first and second home up to $1,000,000. Home equity debt is limited to $100,000 over the current acquisition debt on the combination of a first and second home and may be used for any purpose.

For more information, see your tax advisor or see IRS Publications 523, Selling Your Home and 936, Home Mortgage Interest Deduction

Garage Organization Ideas Under $50

by Terry Sullivan - Lyons-Sullivan Realty

If clutter is leaving little room for cars, get organized with these smart, budget-friendly garage storage solutions.
If you've got a garage, most likely you've got waaayyyy more than cars in there. It's the catch-all place to keep stuff (mostly) out of sight and out of mind.
Put order to the chaos and protect your car's paint job with simple storage systems and organizing hacks for everything from sports equipment to tools.
Bikes, Skates, and Other Wheels
Hoist bicycles to the rafters with a rope-and-pulley system (starting around $40) that makes it easy to raise the bike and lock safely in place. When you’re ready to ride, release the lock and lower your bike to the garage floor. You’ll need an hour or two and basic tools to secure the pair of pulleys to ceiling joists and thread the ropes. (Similar hoists are available for kayaks or small boats; starting around $25.)
Use a specially designed wall rack to hang helmets and skateboards together; starting around $20. Secure this one to wall joists in less than an hour.
Keep scooters and bikes out of the way with tool hooks installed on a length of 1-by-6-inch lumber. You’ll pay $3 for each pair of vinyl-coated screw-in tool hooks and $1 per foot for lumber. You’ll need only an hour or two to secure the lumber to wall joists and screw the hooks into place along the board.
Sporting Goods
Bring together balls and bats on a convenient wire rack equipped with hangers that hold gloves too; starting around $35.
Stash two pairs of snow skis, poles, and boots in one handy steel ski rack; $45. Securing this rack to wall studs helps it hold the weight of the equipment. If you can’t position it on studs, use wall anchors for a secure installation. You can do the task with or without anchors in an hour or two.
Stow your fishing rods by suspending two wire shelves from your garage ceiling about 5 feet apart, then threading the rods through the openings. Use shelves left over from a project or purchase a 4-foot-by-16-inch vinyl-coated wire shelf for less than $9, and saw it in half crosswise (or clip with bolt cutters) to make two 2-foot shelves. Snip additional wires where you need wider slots to accept pole handles or reels.
Tools
Hang wrenches and bungee cords using an ordinary vinyl-coated wire tie-and-belt rack, available at big box stores; $8.
Hang metal tools on a magnetized rail, keeping items in view and easy to retrieve; starting around $30. Simply screw the rail to wall studs to safely hold the weight of the tools (it’s an idea you may be drawn to.)
Cushion and protect tools by padding your toolbox drawers with a soft, non-slip liner. The open-weave design keeps moisture away and prevents tools from rolling around. Enough material to line eight average-size drawers is $15. Just cut the liner to length to fit and slip it into the drawer.
Organize small items -- such as pencils, box cutters, and tape measures -- by stashing them in electrical junction boxes; about $2 each (free if you have spares). Purchase a variety of sizes and shapes and secure them to studs or pegboard.
Yard and Garden Gear
Transform an old filing cabinet into storage bins for various yard tools. Remove the drawers, turn it on its backside, and use a couple afternoons to apply paint and pegboard sides. Less than $25.
Mount heavy tools, long-handled implements, and ladders on long steel rails with extruded holes high on the garage wall and secured to studs. Add hooks and pegs on the rail to hang big tools. Two 48-inch rails sell for $22.
Secure a wooden pallet to wall studs to create a pocket for holding long-handled garden tools. To find free wooden pallets, check with local businesses as well as online classifieds, such as Craigslist. Cost: Free.
Use a can rack to keep bottles of fertilizers, repellants, and lubricants upright and easy to retrieve. Rack ($15) prevents cans and bottles from tumbling off shelves.
Related: 
9 Garage Organization Ideas
11 Inspiring Garage Remodeling Ideas
If clutter is leaving little room for cars, get organized with these smart, budget-friendly garage storage solutions.
If you've got a garage, most likely you've got waaayyyy more than cars in there. It's the catch-all place to keep stuff (mostly) out of sight and out of mind.
Put order to the chaos and protect your car's paint job with simple storage systems and organizing hacks for everything from sports equipment to tools.
Bikes, Skates, and Other Wheels
Hoist bicycles to the rafters with a rope-and-pulley system (starting around $40) that makes it easy to raise the bike and lock safely in place. When you’re ready to ride, release the lock and lower your bike to the garage floor. You’ll need an hour or two and basic tools to secure the pair of pulleys to ceiling joists and thread the ropes. (Similar hoists are available for kayaks or small boats; starting around $25.)
Use a specially designed wall rack to hang helmets and skateboards together; starting around $20. Secure this one to wall joists in less than an hour.
Keep scooters and bikes out of the way with tool hooks installed on a length of 1-by-6-inch lumber. You’ll pay $3 for each pair of vinyl-coated screw-in tool hooks and $1 per foot for lumber. You’ll need only an hour or two to secure the lumber to wall joists and screw the hooks into place along the board.
Sporting Goods
Bring together balls and bats on a convenient wire rack equipped with hangers that hold gloves too; starting around $35.
Stash two pairs of snow skis, poles, and boots in one handy steel ski rack; $45. Securing this rack to wall studs helps it hold the weight of the equipment. If you can’t position it on studs, use wall anchors for a secure installation. You can do the task with or without anchors in an hour or two.
Stow your fishing rods by suspending two wire shelves from your garage ceiling about 5 feet apart, then threading the rods through the openings. Use shelves left over from a project or purchase a 4-foot-by-16-inch vinyl-coated wire shelf for less than $9, and saw it in half crosswise (or clip with bolt cutters) to make two 2-foot shelves. Snip additional wires where you need wider slots to accept pole handles or reels.
Tools
Hang wrenches and bungee cords using an ordinary vinyl-coated wire tie-and-belt rack, available at big box stores; $8.
Hang metal tools on a magnetized rail, keeping items in view and easy to retrieve; starting around $30. Simply screw the rail to wall studs to safely hold the weight of the tools (it’s an idea you may be drawn to.)
Cushion and protect tools by padding your toolbox drawers with a soft, non-slip liner. The open-weave design keeps moisture away and prevents tools from rolling around. Enough material to line eight average-size drawers is $15. Just cut the liner to length to fit and slip it into the drawer.
Organize small items -- such as pencils, box cutters, and tape measures -- by stashing them in electrical junction boxes; about $2 each (free if you have spares). Purchase a variety of sizes and shapes and secure them to studs or pegboard.
Yard and Garden Gear
Transform an old filing cabinet into storage bins for various yard tools. Remove the drawers, turn it on its backside, and use a couple afternoons to apply paint and pegboard sides. Less than $25.
Mount heavy tools, long-handled implements, and ladders on long steel rails with extruded holes high on the garage wall and secured to studs. Add hooks and pegs on the rail to hang big tools. Two 48-inch rails sell for $22.
Secure a wooden pallet to wall studs to create a pocket for holding long-handled garden tools. To find free wooden pallets, check with local businesses as well as online classifieds, such as Craigslist. Cost: Free.
Use a can rack to keep bottles of fertilizers, repellants, and lubricants upright and easy to retrieve. Rack ($15) prevents cans and bottles from tumbling off shelves.
Related: 
9 Garage Organization Ideas11 Inspiring Garage Remodeling Ideas

Paying Cash For Your New Home?

by Terry Sullivan - Lyons-Sullivan Realty

The National Association of REALTORS® reports in its 2016 Profile of Home Buyers and Sellers that 12% of all buyers paid cash for their home.50441319-250.jpg

Before paying cash for a home, a buyer should decide if they might put a loan on the home in the near future.  It may affect the ability to deduct the interest on a mortgage placed on the home at a later date.

Homeowners can currently deduct the interest on up to $1 million of acquisition debt which are the borrowed funds used to buy, build or improve a home. Paying cash for a home establishes acquisition debt at zero. The only deductible interest to the owner would be home equity debt which is limited to $100,000 over acquisition debt.

Paying cash certainly seems like a simple decision but it may limit a homeowner’s ability to deduct interest on a future mortgage. You can get more information about this from IRS Publication 936 or from your tax professional.

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