Wednesday, October 8, 2014

Did You Purchase a Home in 2008? What You Need to Know


Individuals who purchased a home in 2008 and took advantage of the First Time Homebuyer Tax Credit—keep reading. I consulted with Ryan L. Ross, CPA at the Leawood Office Business Center in Leawood, Kansas. He provided some insight into what you need to know as a seller who purchased their home in 2008 and claimed a credit.

First, for all homes purchased in 2008, the First-Time Homebuyer Credit is repaid over 15 years or sooner if the home is sold or ceased to be the taxpayer’s main home. For homes purchased after December 31, 2008, the credit must be repaid only if the home is sold or ceases to be the taxpayer’s main home within 36 months of the date of purchase.

Other things to note: Form 5405, Repayment of the First-Time Homebuyer Credit, must be filed for the year the home is sold or ceases to be the taxpayer’s main home. 

Be sure to look into exceptions to this repayment rule, too. These exceptions include:
  • The repayment is limited to the gain on the sale of the home. Gain is typically computed by subtracting the original cost and improvements from the sales price;
  • The home is destroyed or condemned, and a new home is purchased;
  • Extended duty of military personnel or intelligence officials;
  • Death of the taxpayer.

For more information, consult your tax advisor or contact me to get in touch with someone who can help.

Monday, February 10, 2014

The Numbers Are In! 2014’s Remodeling Projects With the Highest Cost Recouped in Kansas City

Last year, I published a blog titled The Top 10 Remodeling Projects with the Highest Cost Recouped in Kansas City that covered the home remodeling projects that gave homeowners the highest rate of return in 2013. Now that 2013 has come and gone, it’s time to see which remodeling projects will give you the best return on investment in 2014!

According to Remodeling, the top 10 remodeling projects with the highest cost recouped in Kansas City this year are:

     1.  Garage Door Replacement:

Remove and dispose of existing 16x7-foot garage door and tracks. Install new 4-section garage door on new galvanized steel tracks; reuse existing motorized opener. New door is uninsulated, single-layer, embossed steel with two coats of baked-on paint, galvanized steel hinges, and nylon rollers. 10-year limited warranty.

Cost: $1,604
Resale value: $1,233
Cost recouped: 77.0%

2.  Minor Kitchen Remodel:

In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Cost: $19,854
 Resale value: $14,941
Cost recouped: 75.3%

3.  Entry Door Replacement (Steel):

Remove existing 3-0/6-8 entry door and jambs and replace with new 20-gauge steel unit, including clear dual-pane half-glass panel, jambs, and aluminum threshold with composite stop. Door is factory finished with same color both sides. Exterior brick-mold and 2.5-inch interior colonial or ranch casings in poplar or equal prefinished to match door color. Replace existing lockset with new bored-lock in brass or antique-brass finish.

Cost: $1,240
Resale value: $837
Cost recouped: 67.5%

4.  Deck Addition (Wood):

Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install pressure-treated deck boards in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing system using pressure-treated wood posts, railings, and balusters.

Cost: $10,311
Resale value: $6,926
Cost recouped: 67.2%

5.  Bathroom Remodel:

Update an existing 5-by-7-foot bathroom. Replace all fixtures to include 30-by-60-inch porcelain-on-steel tub with 4-by-4-inch ceramic tile surround; new single-lever temperature and pressure-balanced shower control; standard white toilet; solid-surface vanity counter with integral sink; recessed medicine cabinet with light; ceramic tile floor; vinyl wallpaper.

Cost: $17,439
Resale value: $11,444
Cost recouped: 65.6%

6.  Two-story Addition:

Add a first-floor family room and a second-floor bedroom with full bathroom in a 24-by-16-foot two-story wing over a crawlspace. Add new HVAC system to handle addition; electrical wiring to code.

Family room: Include a prefabricated gas fireplace; 11 3-by-5-foot double-hung insulated clad-wood windows; an atrium-style exterior door; carpeted floors; painted drywall on walls and ceiling; and painted trim.

Bathroom: 5 by 8 feet. Include a one-piece fiberglass tub/shower unit; standard white toilet; wood vanity with solid-surface countertop; resilient vinyl flooring; and mirrored medicine cabinet with built-in light strip; papered walls; and painted trim; exhaust fan. Bedroom: Include walk-in closet/dressing area; carpet; painted walls, ceiling, and trim; general and spot lighting.

Cost: $165,580
Resale value: $106,054
Cost recouped: 64.1%

7.  Deck Addition (Composite):

Add a 16-by-20-foot deck using pressure-treated joists supported by 4x4 posts anchored to concrete piers. Install composite deck material in a simple linear pattern. Include a built-in bench and planter of the same decking material. Include stairs, assuming three steps to grade. Provide a complete railing using a matching system made of the same composite as the decking material.

Cost: $16,291
Resale value: $10,297
Cost recouped: 63.2%

8.  Siding Replacement (Vinyl):

Replace 1,250 square feet of existing siding with new vinyl siding, including all trim.

Cost: $12,411
Resale value: $7,803
Cost recouped: 62.9%

9.  Major Kitchen Remodel:

Update an outmoded 200-square-foot kitchen with a functional layout of 30 linear feet of semi-custom wood cabinets, including a 3-by-5-foot island; laminate countertops; and standard double-tub stainless-steel sink with standard single-lever faucet. Include energy-efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

Cost: $57,520
Resale value: $36,044
Cost recouped: 62.7%

10.  Attic Bedroom:

Convert unfinished attic space to a 15-by-15-foot bedroom and a 5-by-7-foot bathroom with shower. Include a 15-foot shed dormer, four new windows, and closet space under the eaves. Insulate and finish ceiling and walls. Carpet floor. Extend existing HVAC to new space; provide electrical wiring and lighting to code. Retain existing stairs, but add rail and baluster around stairwell.

Cost: $53,696
Resale value: $32,371
Cost recouped: 60.3%

Want to learn more about buying or selling a home in the Kansas City and Overland Park areas? Check out my Facebook page.

Friday, January 24, 2014

January is Radon Awareness Month – Get Your Home Tested For Only $100!

Image credit: Shane Lyle, Geology Extension
Kansas Geological Survey

January has been designated as Radon Awareness Month by the United States Environmental Protection Agency. But as a homeowner, do you even know what radon is? 

I caught up with my good friend John Clason with Crown Home Inspections to learn a little bit more.  In honor of Radon Awareness Month, John isn’t just inspecting homes for their radon levels, he’s doing it at a discounted price!

Before I let you in on the discount details, let’s explore what radon is and why your home may need to be tested.

As mentioned in a previous Team Ohlde blog post, radon is a silent and odorless gas that could leak into homes from the natural decay of uranium present in different types of soil. Radon contains cancer-causing alpha particles that are drawn from parched soil through draught-driven cracks in home foundation. Believe it or not, radon is the second leading cause of lung cancer, only behind smoking. The EPA estimates that approximately 22,000 people die each year from lung cancer caused by radon.
So as you can infer, having high radon levels in your home can be extremely dangerous. But the even scarier part is that it’s almost impossible to tell what radon levels your home has unless you do a radon test.  A radon tests includes a 48-hour moderation of the home. John at Crown Home Inspections uses an electric continue radon monitor that tells the radon level for each hour during the test and provides an overall reading at the end.

After the test, homeowners receive an overview of their home’s radon levels. Any home with a radon level of 4.0 picocuries per liter of air or higher should act immediately.  Luckily, it’s easy to fix any high levels of radon.

What’s the fix exactly?  A radon mitigation system can be installed in a home in about 3-4 hours.

As the cliché phrase goes, it’s better to be safe than sorry! Take the month of January to schedule a radon testing for your home from Crown Home Inspections for just $100 (a $25 discount off the regular price through February 15, 2014!).  Visit Crown Home Inspections website to learn more.


Want more help with keeping your home safe and in shape? Check out my list of local services providers! Click here