Tax Credits: A Gift from Congress

Tax Break Rewards Homeowners Who Make Home Energy Improvements

If you installed energy-efficient home improvements in 2014, you may be eligible for a $500 tax credit. Among the home improvements that might qualify for the tax credit:

• Doors
• Windows
• Insulation
• HVAC systems
• Water Heaters
• Roofs
• Skylights
• Biomass stoves

Tax credits are valuable because they offset the tax you owe, dollar for dollar. For example, if you owed $10,000 in taxes, a $500 tax credit would reduce what you owe to $9,500.

The Residential Energy Tax Credit had expired at the end of 2013, but just last week, Congress renewed it through 2014. That means you may be able to claim the tax credit when you file your 2014 federal taxes. Congress did not extend the tax credit through 2015.

Warning: It may take a while for the IRS to update its website with information about the renewal, and to post a 2014 version of Form 5695, which you’ll use to claim the credit.

Check the Energy Star website to see if the specific energy-efficiency home improvements you made qualify for the credit. Give that site a few weeks to get updated with the latest information, as well.

The Fine Print

In general, you’ll get a 10 percent tax credit for installing energy-efficiency improvements. But, your tax credit is capped for some items. For example, you can’t claim more than $200 for windows, and a new air conditioner will earn you no more than a $300 tax credit.

There’s also a lifetime cap of $500, so if you took the tax credit in prior years, you have to subtract the credit you claimed from $500. For example, if you took $400 in 2013, you can only take the remaining $100 in 2014.

The cost to install your energy-efficiency improvements may, or may not, be included. For example, window installation is included, but insulation installation is not.

This tax credit applies only to your main principal residence.

Where To Get More Info

Houselogic.com has excellent information about taking the tax credit for these items:

• Biomass stoves 

• Heating, ventilation, air conditioning 

• Insulation  

• Roofs (metal and asphalt) 

• Water heaters (non-solar)

• Windows, doors, and skylights 

Image source: Owens Corning

courtesy of Albert Clark's HomeAction Newsletter

Economist: Here’s What You Should Know about the 2014 Housing Market

This is a much read article shared via The Real Estate Book blog. I love to shared the best information.  The Real Estate Book is a great source of both market information and for the home that you might buy.

You will see that the economic outlook is that 2014 should be the strongest real estate market since the "Great Recession".   You will see there are many factors under girding this evaluation.

So read and decide:  Why am I still sitting on the sidelines???

Economist: Here’s What You Should Know about the 2014 Housing Market

2014 Work Plan

2014 Work Plan

for YOUR HOME

Happy New Year!! 

                          NOW GET TO WORK!!!

You would think that is what Better Homes and Garden's article linked below is trying to tell us.   Actually, the article provides monthly to dos that give you or me an idea of the little, and sometime simple, things we can do to maintain our home.

You will note some will take a few days efforts and others will take a morning on Saturday or some evening during the week.

Yet, one of the joys of home ownership is making the house your own.  Whether it is painting a bedroom or rearranging/organizing the mudroom, we make a house of sticks and bricks or home where wonderful memories are made.

So do think of these monthly activities as drudgery to avoid but as history making to embrace!!!!

                                            2014 Work Plan