Homeowners are familiar with the tax deductions that are available to them but there are also potential deductions available for those who own rental properties. Realtor® Joe Cline of Austin, Texas lists seven possible deductions that rental property owners will want to be aware of:

Do you own any property that you rent out as investment? If yes, did you know that you can take advantage of tax deductions provided for owners of rental properties? That is right; aside from the income you earn by renting out and the possible profits from appreciation of your capital, owing a property can also reduce your income tax. In fact, rental real estate offers the most tax benefits compared to almost any other investment out there. Here are some of the possible tax deductions property rental owners can enjoy:

1. Tax deduction from interest
Rental property owners can take advantage of interest as their biggest tax deductible expense. If you are paying interest payments on a loan you obtained to buy the property, or if you pay interest on credit cards for services and goods incurred due to rental, you can declare these for tax deduction purposes.

2. Tax deduction due to property depreciation
Rental property owners may also recover the cost of their property by considering depreciation. Depreciation takes into account the deterioration and the wear and tear caused onto the property over time.

3. Deduction from repairs
Taxation regulations also allow deductions brought about by repair and improvement-related expenses, as long as these repairs are necessary and reasonable. The costs of improvement are fully deductible in the same taxation year as they were incurred. Fixing gutters, repainting, fixing leaks and floors, and replacement of broken windows – these are some examples of tax deductible repairs.

4. Deduction from insurance
You can also reduce your income tax by deducting the premiums you pay for insurance related to your rental transactions. This includes landlord liability insurance, fire or theft insurance for your rental property. If you hired employees, you may also deduct the amount you pay for their health or compensation insurance.

5. Deduction from professional and legal services
You can deduct all fees you pay for accountants, lawyers, real estate advisers, property management services, and other professional services you hire for your rental activity. These are considered part of your operating expenses.

6. Tax deduction from hiring employees and/or independent contractors
If you hire the services of other employees to perform something related to the rental, you can also deduct the wages you pay them as part of your business expense.

7. Deduction from travel expenses
If you spend on travel expenses because of your rental business, such as when collecting rent or inspecting your rental property for maintenance, you can deduct your fuel expenses, meals and other related expenditures. Even overnight travel may be deductible, as long as there are proper records to back up the claim.

As a rental property owner, there are tax deductions you can take advantage of to lower your yearly taxes. The abundance of these deductible expenses makes rental real estate one of the most attractive investments there is. Know which types you qualify for, and see how much potential savings you have been missing out on.

When you sign papers to buy a new home, your thoughts might immediately drift to what you’d like to buy to turn it into your perfect place. New appliances, new furniture, it all adds up. Before you pull out the credit cards you may want to consider the advice of Tuval Mor, a broker with Keller Williams in New York City, New York who cautions new home buyers about spending during the ‘quiet period:’

Ah, the thrill of purchasing your dream home can inspire you to go out shopping for the perfect living room set with matching drapes, before the closing. If you planned on doing that with credit, best to wait till after the closing. Due to high foreclosure rates throughout the nation, Fannie Mae has instituted a new Loan Quality Initiative which requires that any lender determine that “borrower liabilities incurred up to, and concurrent with, closing are disclosed and evaluated in qualifying the borrower for the loan.”

This period between the approval and the closing is usually called “the quiet period.” Lenders can vary in how they enforce this new initiative that just came into effect, but in many cases what this means is a second credit report pull right before closing. Did you buy a new professional cookware set for your new kitchen on a new Sears’s card that the cashier talked you into for the 10% discount? Well if you use the entire $1000 limit on your purchase, this seemingly innocuous purchase could throw your debt-to-income ratio off.

Fannie Mae and others have done studies and found consumer behavior patterns correlating with mortgage losses and as a result have incorporated sophisticated new credit surveillance systems into the mortgage industry. It is important for home buyers, and also those looking to refinance their mortgage, to be aware that unlike the boom years, today every action that pertains to their credit will be considered until the closing, and that credit splurges during the quiet period are a clear no-no in today’s mortgage environment.

The good news is that if you put those credit cards on ice until your new home is really yours, you should have a smooth closing. And with all the thousands of dollars you’ll be saving with these historically low interest rates (around 4%), you can afford to splurge on the perfect furnishings and accessories… just wait a little bit, until after the mortgage is closed!

In a recent post we addressed the issue of controlling moisture inside the home. But how do you protect your home from heavy rains and snow? Realtor® Tom Slupske of Maple Grove, Minnesota gives five ways to control moisture outside the home before it can get in and cause damage:

These days, homes are at a greater risk of water damage than ever before. Heavier precipitation and less predictable weather patterns increase the chance of unwanted water entering our homes.

Water damage is serious business. It is a drain – financially, emotionally, even physically. Just one inch is all it takes to destroy sentimental or irreplaceable items, or to create structural damage that can depreciate the value of your home. The bacteria and mold it can leave in its wake can affect air quality in your home and create potential health risks. The best way to deal with water damage is to prevent it from happening in the first place.

Here are some easy things you can do outside your home to help keep you safe and dry.

Disconnect downspouts from the municipal sewer system.Extend downspouts at least 6 feet away from your basement walls and drain away from your house towards the street or backyard.

Install a rain barrel to minimize the amount of surface water that could enter your home.

Grade the earth or hard surfaces around your home to slope away from your foundation.

Before temperatures drop to freezing, turn off the water supply to outdoor taps and faucets, then open the taps to drain the water completely. Leave taps in the open position until spring.

Keep gutters and downspouts clear of leaves and other debris – clean them out at least once a year – late fall is a good time.

With a little know-how and some routine maintenance, you can stay ahead of the wave and keep unwanted water out.

Whether you’ve been saving up to buy some furniture to decorate your home, or you need to make an unexpected furniture purchase, there is no need to worry about the cost. Fortunately, there are a variety of places to shop, and many ways to save money on furniture.

Where to Shop for Furniture

1. Online
Acquiring furniture consists of two main steps: shopping and buying. Before you buy, you need to shop. By shopping online, you can get a better idea of what styles you like, and how much you can expect to pay for the furniture you need. You can also browse more stores in a shorter amount of time, without spending money on gas.

Once you have a better idea of what you need, and what you can expect to pay, start browsing stores to buy furniture. Look on a variety of different websites, including eBay, Ikea, Macy’s, Overstock.com, and Pottery Barn. If you peruse online auctions, discount shopping websites, and department stores, you can find a range of prices for similar items.

Pay close attention to the construction of the furniture, and compare prices for hardwood and laminate. Hardwood furniture lasts longer, but inexpensive laminate furniture can be an excellent choice if you plan on replacing it in the next five years.

2. Thrift Stores
A friend told me recently that he bought a really nice, sturdy dining room table at Goodwill. He brought it home, sanded it down, and painted the table. Best of all, he only paid $25 for it, and $20 for the restoration supplies. His wife loves the new table, and especially loves the price he paid.

You may have to put a little elbow grease into cleaning up used furniture, but in the end, you’ll have something cheap and unique that you can be proud of in your home. Pay close attention to scratches, dents, and other signs of wear and tear when shopping for used furniture. Determine whether you can fix the damage, or if you can live with it.

Watch for special sales days, to get the best deal on your used furniture. Goodwill and the other large thrift store chains offer additional savings on specific items in their stores during sales. Thrift stores also offer discounts to senior citizens.

3. Garage Sales/Estate Sales
In addition to thrift stores, garage sales and estate sales offer many treasures. Use your imagination when looking at pieces, to think how you might use them in your own home. For example, an old stereo cabinet could be a fun alternative to a newly constructed entertainment center. However, keep in mind that the furniture found at garage sales and estate sales may require some refurbishing.

A little luck finding the perfect piece never hurts, but try employing the buddy system, where friends and family members shopping at garage sales keep an eye out for the furniture you need.

4. Classifieds/Craigslist
Check out the classifieds and Craigslist to quickly find used furniture, without going from garage sale to garage sale. Use some creativity as you look through the listings to envision how you could restore and use each piece in your home.

Use a variety of words and phrases when conducting your online search on Craigslist. For example, search for wardrobes and armoires, couches and sofas, and end tables and side tables, to narrow your search and find the furniture you need.

5. Freecycle
The Freecycle Network enables people to give away their unwanted items to other people for free, as a way to recycle. Sign up on the website to begin searching for free furniture in your area. These items may need refurbishing, but since they are free, that certainly makes up for any supplies you may need to buy for restoration. When you use Freecycle, you also act as a good steward of our planet, by keeping waste out of the landfills.

6. Warehouse Clubs
When my husband and I were shopping for a bedroom set, we happened to receive a flyer in the mail from Costco. I occasionally shop at there, but I never knew that warehouse clubs sold furniture. After researching the Costco product line, we found deeply discounted, high quality furniture. They also offered free delivery for the items we purchased.

Based on my experience buying my Costco bedroom set, I would definitely shop at a warehouse club for furniture in the future.

7. Outlets
Outlet centers offer great deals as well. I bought furniture from a Pottery Barn outlet for a fraction of the original cost. Outlets do not always offer bargain prices, however, so make sure you comparison shop before buying furniture from an outlet mall.

Tip: Before you buy furniture from an outlet store, do some research to find out the original, pre-sale prices. Unless the furniture at the outlet mall is substantially discounted, you may want to wait and see if the item goes on clearance.

8. Clearance/Scratch and Dent Area
Many furniture stores have a clearance area, or a “scratch and dent” area, in the back of the store. When you enter, head straight for the back of the building. My husband and I found a table we wanted, along with some chairs, for a quarter of the retail price, mainly because each piece had a tiny scratch on it. If we had missed the clearance area, we would have paid full price for the table, and all of the chairs.

When you examine items in the clearance area, make sure to inspect the furniture carefully for damage. Remember, everything ended up in the clearance because it didn’t sell, so it may have scratches, stains, or other signs of wear.

9. Ikea
Ikea has a contemporary style, while providing unique storage in order to maximize your space. While Ikea does offer great prices, if their modern style does not match well with the motif of your home, you may not want to take the time to get lost in the store. Ikea has inexpensive furniture, but watch out; many of the items require self-assembly.

10. Auctions
Auctions offer another way to buy furniture for bargain prices. Visit auction houses in your area to find out more about the types of upcoming auctions they have planned. When you bid on an item, remember to stick to your budget. You don’t want to overbid or get caught up in the moment, and bid more than you can afford.

When buying used or antique furniture at an auction, examine it carefully beforehand. Look for evidence of wear and tear, scratches, tears, and other types of damage. Determine if the furniture needs restoration, and if it does need refurbishing, consider the cost of the work and the supplies as part of the overall cost.

11. Hand-me-Downs
Make sure friends and family know that you need furniture, and accept the gift of used furniture from them. It might seem embarrassing, but most people start out this way, by accepting an old couch or TV from a friend or family member.

You help your loved ones clear out some much-needed space in their homes, and they help you furnish your home. One day, you can return the favor, giving some of your gently used furniture to someone else in need.

Read more here: http://www.moneycrashers.com/proven-ways-save-money-furniture-store/

What do side-by-side refrigerators, laptop computers, and zero-turn-radius riding mowers have in common? They’re among the most repair-prone products consumers can buy, according to Consumer Reports’ most recent Product Reliability Survey.

In the magazine’s Repair or Replace Survey, 27,404 subscribers reported about the troubles they had with 53,218 broken appliances, electronics, lawn equipment, and more.

Though consumer goods have become more complex and contain more electronics than a decade ago, the 33 products featured in the survey aren’t failing more frequently. But when things go wrong, they tend to go horribly wrong. Consumer Reports National Research Center found that more than half of the products that did break stopped working altogether, and another 30% still worked, but poorly.

“Should I repair or replace it; how much is the repair likely to cost; what will a new one cost. These are many of the questions that go through a consumer’s mind when a major product breaks,” says Celia Kuperszmid Lehrman, deputy home and yard editor at Consumer Reports. “Being armed with the right answers can save people thousands of dollars on appliances and gear.”

Here’s what else Consumer Reports’ survey found:

Computers break — a lot. Around one in three laptops and desktops break by their fourth year. Many computer breakdowns are due to malicious software (malware) or hard drive failure. Installing antivirus software on a computer is the best defense against malware. To be safe, always shut down the device before traveling even a short distance.

Some technologies are finicky. Refrigerators with icemakers are twice as likely to break down as those without. The device’s complicated design and the extreme environment it must operate in explains the high failure rate. Among laundry appliances, front loading washers are more repair-prone than top-loaders. The large rubber gasket that forms a watertight seal around the door is the common culprit. Mold is another issue. Manufacturers recommend periodically cleaning the gasket with a bleach solution and keeping the door ajar after each use to allow ventilation.

Extended warranties don’t deliver. Based on Consumer Reports’ survey, appliances usually don’t break during the extended-warranty period, normally after the standard warranty has expired, but within two to three years of purchase. Even when breakdowns occur in that time, the median repair cost isn’t much more than the median price of a warranty. And if a product doesn’t break, the extended warranty is just a waste of money. A computer might be an exception, especially if you travel frequently and take the device along for the ride. Make sure the warranty covers accidental damage and extended tech support.

Brand reliability varies by product. Manufacturers often have strengths and weakness in different product categories. GE, for example, has made very reliable cooking appliances, but its refrigerators with icemakers have been repair-prone. John Deere’s lawn tractors have been very reliable, but its self-propelled lawn mowers have been significantly more repair-prone than other brands. And LG has made reliable plasma TVs and clothes dryers, but not reliable side-by-side refrigerators.

The 50% rule still stands. Consumer Reports suggests buying a replacement if the repair will cost more than half the price of the new product. Replacing electronic gear might be less costly than most people think because prices are steadily dropping in some categories. Major appliances, on the other hand, are getting more expensive and they usually have long service lives, which is why Consumer Reports generally recommends holding onto them longer than electronics.

Some products are harder to repair. Consumer Reports’ survey indicates that repairs of gas cooktops, built-in refrigerators, and home-theater systems can also be frustrating because they take an inordinately long time, cost a lot, or because the item requires further service calls. Dryers, electric cooktops, and digital cameras have the highest success and satisfaction rates.

The full report on repairing or replacing appliances, electronics, lawn equipment, and home exercise gear, appears in the August issue of Consumer Reports and online at www.ConsumerReports.org.

Source: Consumer Reports

Housing data for June shows pending sales increased 16.4 percent statewide. The report from the Metropolitan Indianapolis Board of Realtors and the Indiana Association of Realtors also indicates the median sales price rose 1.4 percent. IAR Chief Executive Officer Karl Berron says "pending sales are a good measure of confidence."

INDIANAPOLIS – In the first half of 2011, decreased housing activity and stable prices defined the central Indiana market. Housing data released today for June 2011 provided a brighter picture for the future, including increased prices and an abundant number of pending sales. This is according to data in a jointly released report from the Metropolitan Indianapolis Board of REALTORS® (MIBOR) and the Indiana Association of REALTORS® (IAR).

In central Indiana, the average sales price of homes increased by 1.1 percent to $150,797 during the first six months of 2011 when compared to January-June 2010. Average sales price also rose in the three month comparison by 2.2 percent to $156,999 and by 2.9 percent in the one month comparison to $164,190. Median sales price during January through June 2011 experienced a drop of 1 percent to $120,788. April through June 2011 median sales prices held steady, while June-only numbers increased 4 percent to $129,999.

The number of closed sales in central Indiana decreased by 12.7 percent in the first half of 2011. Closed sales for June show a smaller, 6.3 percent decrease.

The surprise number comes in the form of pending sales, while down for the year, up 19 percent for the month of June. Pending sales reflect signed purchase agreements that have yet to close. The robust number bodes well for more closed sales in the coming months.

Statewide, when comparing June 2011 to June 2010:

The median sales price increased 1.4 percent to $119,900

Pending sales increased 16.4 percent

“During the last six months, the recovery of the housing market has been slow and steady – not dramatic or flashy,” said Dave Goff, 2011 MIBOR president. “This month, however, has painted an encouraging picture for the remainder of the year. Interest rates are down nationally and local pending sales have climbed drastically, providing a positive outlook.”

IAR CEO Karl Berron agreed. “Pending sales are a good measure of confidence. A full recovery lies with jobs, available financing for qualified buyers and less foreclosure inventory. It’s all part of the mix.”

Additional key central Indiana findings for January through June 2011:

New listings decreased by 15.2 percent during the six month comparison.

Months of supply increased to 9.8 months during the first half of 2011.

Total active listings fell by 1.6 percent

The attached data will tell consumers how the central Indiana housing market is performing according to eight different indicators. Each indicator will have one-, three-, six- and 12-month comparisons, as well as a historical look. Consumers will also have access to specific county information for the 13 counties included in MIBOR’s Broker Listing Cooperative® (BLC®): Boone, Brown, Decatur, Hamilton, Hancock, Hendricks, Johnson, Madison, Marion, Montgomery, Morgan, Putnam and Shelby counties.

IAR’s report, found online under the Reports tab of www.IndianaIsHome.com, will show consumers the state of Indiana’s housing market according to the same indicators with one-month and year-to-date comparisons, as well as a historical look. Consumers will also have access to specific county information for 91 of Indiana’s 92 counties in a sortable table format.

This information has been provided by MIBOR. MIBOR is the professional association representing central Indiana's REALTORS®. MIBOR serves the needs of more than 6,500 members in Boone, Brown, Hamilton, Hancock, Hendricks, Johnson, Marion, Montgomery, Morgan and Shelby counties. MIBOR also supplies the BLC® listing service to REALTORS® in Decatur, Madison and Putnam counties.

IAR represents approximately 16,000 REALTORS® who are involved in virtually all aspects related to the sale, purchase, exchange or lease of real property in Indiana. The term REALTOR® is a registered mark that identifies a real estate professional who is a member of the world’s largest trade association, the National Association of REALTORS®, and subscribes to its strict Code of Ethics.

Source: MIBOR &  InsideINdianaBusiness.com Report http://www.insideindianabusiness.com/newsitem.asp?ID=48881

Experiencing a theft, flood, fire, or other casualty loss is devastating enough. Now imagine trying to list from memory for your insurance claim every single item that was damaged or destroyed. The task becomes less daunting if you create a home inventory in advance and keep it in a safe place.

Creating a home inventory can be done with pencil and paper alone, but a digital camera and camcorder make the job easier. Set aside enough time to review your insurance policies, dig up receipts, document your possessions, and figure out where you’ll store your records. One day should be sufficient.

A home inventory is essential

From appliances, plates, and glasses to collectibles, rugs, and furniture, the average home is packed with an array of items collected over the years. And while you may be able to list many of them in a pinch, chances are you’d miss some important possessions if you ever needed to reconstruct your home’s contents from memory, says Mark Goldwich, founder of GoldStar Adjusters, a Jacksonville, Fla., claims adjusting firm.

“Home inventories are a must no matter what the value of the home’s items are,” says Goldwich. “If you’re going to insure your property and pay for that insurance, you really should be able to document the ownership and the value of the items that you’re insuring. If you don’t have proof of the items you owned, it makes filing your claim much more difficult.”

Your job doesn’t end once you’ve compiled a home inventory, a detailed list of everything in your household. Be sure to compare estimated values to your policy’s coverage to ensure that you’ll be able to replace your belongings in case of damage or theft, says Goldwich, who is the author of “Uncovered: What Really Happens After the Storm, Flood, Earthquake or Fire.” In some cases, he says, you can purchase additional coverage if the value of your possessions exceeds the limits on your homeowners, flood, or other disaster policy.

Take photos and video of possessions

Jack Hungelmann, author of “Insurance for Dummies,” says a picture can be worth more than just a thousand words—it can add up to thousands in cash if you ever need to file an insurance claim. Hungelmann recommends using a digital camcorder or camera to take pictures of each room to document your belongings. “I recommend that people open up their cupboards and drawers. Be sure you have a record of all the things you own,” he says.

Goldwich says that creating such a home inventory might seem daunting, but digital video—you can pick up a decent camcorder for about $150—can make the task much easier.

Homeowners can literally walk from room to room and record narrative descriptions of items. You should note whether something is an antique, for example, or if it has other qualities that make it especially valuable such as the size of a television screen or the type of stones in a piece of jewelry. Get close-up shots of serial numbers on electronics, power tools, and the like.

Filling in a printed checklist with serial numbers, brands, quantities, and estimated values will prove indispensible if an insurance claim ever needs to be filed. The adjuster will likely ask for such a list, and you can use the video or photos as proof of ownership. Download our free home inventory checklist to create your own.

Keep your home inventory safe

Of course, such documentation is useless if it’s destroyed in a natural disaster, consumed by fire, or stolen along with your personal computer. Hungelmann says that using digital media allows you to store the files on online backup services like Carbonite.com or iBackup.com in case your home is destroyed.

If you’d like to save the $10 or more per month these services typically cost, you could also save the files on a USB drive that’s kept in a safe-deposit box, at a relative’s home, or in your emergency bag. The bag should include essentials your family needs in case you’re forced to flee on short notice.

It’s also a good idea to keep a file with receipts and any appraisals of valuable items you own. Store these documents off-site as well. Goldwich says that the more documentation you have to prove what you owned and what it was worth, the easier the claims process will be.

Gwen Moran has been writing about business, finance, and real estate for more than a decade. Her work has been published by Cyberhomes.com, Entrepreneur, Financial Planning, Newsweek.com, On Wall Street, The Residential Specialist, and many others.

HIGHLANDVILLE, Mo. (AP) __ A 72,000-sq.-foot private home being built in southwest Missouri will be one of the largest in the United States when it’s completed.

The Springfield News-Leader reported that the home is being built by Steven Huff, who has family ties in Missouri and is chairman of Wisconsin-based TF Concrete Forming Systems.

Not surprisingly it will be built out of the insulated concrete, manufactured and distributed by Huff’s company. Michigan-based Helix also is partnering in the project, providing the steel
reinforcement product that will be used.

Luke Pinkerton, founder of Helix, said the idea was to create a home that uses very low energy, as well as having strong resistance to tornadoes, hurricanes, earthquakes, fire, flood and insect damage.

“What we’re able to do is develop a home that has very, very good insulating properties for heating and cooling,” he said. “It’s very robust and strong.”

Called Pensmore, the home includes two elevators, 13 bedrooms, 14 bathrooms, a billiard room, a home theater, a music room and a 1,600-sq.-foot library. Blueprints submitted in 2007 show the main level and second story span 44,641 sq. feet. There are another 23,020-sq. feet in the basement, and the garage is 4,000 sq. feet.

Source: http://stlouis.cbslocal.com/2011/07/18/massive-home-under-construction-in-mo/?utm_medium=twitter&utm_source=twitterfeed

WASHINGTON (MarketWatch) - New construction of U.S. houses jumped in June to their highest level in five months, the Commerce Department estimated Tuesday. Starts rose 14.6% in June to a seasonally adjusted 629,000 annualized units, stronger than the 580,000 pace expected by economists surveyed by MarketWatch. This is the highest level of starts since January. Starts of new single-family homes rose by 9.4% to 453,000 in June, while starts of large apartment units surged 31.8%% to 170,000. Building permits, a leading indicator of housing construction, rose 2.5% to a seasonally adjusted annual rate of 624,000. This is the highest level of permits since December

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Housing starts rise 14.6% to five-month high