End of Year Tips for Georgia Homeowners and Renters

ATLANTA – Where has this year gone? Well, here we are at the end of December and thank goodness there is still time to get your house in order. Whether you rent or own, FOX 5 real estate expert John Adams says there are things you can do now to save yourself money and headaches in the year ahead. come.

Adams put together a list of the top 20 end-of-year tips for renters and landlords. Unless you’ve been living under a rock, there’s something here for you.

These are mostly time-limited opportunities. If you take a few minutes and think about it now, you will set the stage for a happier new year. These are the responsibilities of living in a house or apartment. Mastering them now is the smart thing to do.

1. Winterize your home:

• Isolate: Check and improve the insulation in your attic, walls and around windows and doors.
• Seal air leaks: Seal cracks and gaps around windows, doors and where pipes enter the house to prevent drafts.
• Clean gutters and downspouts: Clear gutters and downspouts of leaves and debris to prevent ice dams and water damage.

2. Maximize deductions for homeowners:

• Mortgage interest deduction: Itemize deductions and claim the mortgage interest deduction on your tax return.
• Property tax deduction: Itemize deductions and claim the property tax deduction on your tax return.

3. Check your heating system:

• Schedule a professional inspection: Have your furnace or boiler serviced by a qualified technician.
• Change the air filters: Replace air filters regularly for efficient and safe heating.
• Test smoke and carbon monoxide detectors: Make sure they are working properly and replace the batteries if necessary.

4. Explore tax breaks for working from home:

• Consider deducting office space even if you rent: The home office tax deduction is a self-employed benefit that covers expenses related to the business use of your home, including rent, insurance, utilities, repairs, and depreciation.

5. Prepare for freezing temperatures (everyone):

• Insulate the pipes: Wrap exposed pipes with insulation to prevent freezing.
• Let the taps run lightly: A slow flow of water can help prevent pipes from freezing.
• Know where your water shut-off valve is: In the event of a frozen pipe, you will need to quickly turn off the water supply.

6. Document charitable donations:

• Keep records of all donations: Maintain records of all charitable donations, including receipts and canceled checks.
• Consider donating to local charities: Donating to local charities can provide additional tax benefits.

7. Energy-Efficient Home Improvements

• Install energy-efficient windows, doors and insulation.
• Look for tax credits in solar panels and other renewable energy sources.
• Retain receipts and manufacturer certifications for tax purposes.

8. Take advantage of tax-advantaged retirement accounts:

• Contribute to a 401(k) or other retirement plan: Contribute to a 401(k) or other employer-sponsored retirement plan to reduce your taxable income.
• Consider a traditional IRA: If you’re not eligible for an employer-sponsored plan, consider contributing to a traditional IRA.

9. Understand the tax implications of selling your home (owners):

• Capital gains exclusion: Familiarize yourself with the capital gains exclusion, which allows homeowners to exclude a portion of the profits from the sale of their primary residence from their taxable income.
• Consult a tax professional: Discuss the tax implications of selling your home with a qualified tax advisor.

10. Explore the tax benefits of rental properties:

• Deductions for rental costs: If you own rental property, consider deducting rental expenses, such as mortgage interest, property taxes, and maintenance costs.
• Depreciation deduction: Claim the depreciation deduction on your rental property, which allows you to deduct a portion of the cost of the property over time.

11. Defer income

• If possible, postpone paying your income until next year.
• Consider delaying bonuses, commissions, or self-employment income.
• Consult a tax advisor to assess the impact on your tax bracket.

12. Check your home insurance or renters insurance

• Review your policy for adequate coverage, especially for winter-related incidents.
• Consider adding coverage for specific hazards like ice dams or frozen pipes.
• Update your policy if you have made significant improvements to your home.

13. Review Mortgage Insurance Premiums

• Deduct mortgage insurance premiums if paid during the year.
• Include bonuses for primary and secondary residences, if applicable.
• Make sure you meet the income requirements to claim the deduction.

14. Refinance your mortgage

• Shop for the best mortgage rates and terms.
• Calculate potential savings and refinancing costs.
• Make sure the refinancing fits your long-term financial goals.

15. Contribute to a Traditional or Roth IRA: If you’re eligible, contribute to a traditional or Roth IRA to reduce your taxable income.

16. Maintain your lawn:

• Rake the leaves: Rake leaves regularly to prevent them from choking your lawn.
• Fertilize your lawn: Apply a winter fertilizer to help your lawn recover from the stress of the growing season.
• Water thoroughly before the ground freezes: Deep watering helps establish a strong root system for winter survival.

17. Charitable Contributions

• Donate to qualified charities and keep the receipts.
• Consider donating appreciated assets to receive additional tax benefits.
• Track mileage and expenses if you volunteer for charity.

18. Track Home Office Expenses (Owners):

• Keep detailed records: If you use part of your home for business purposes, keep accurate records of your expenses to maximize deductions.
• Consult a tax professional: A tax professional can help you determine the best way to deduct home office expenses.

19. Stay organized:

• Keep accurate records: Keep meticulous records of all your income and expenses throughout the year.
• Use tax software or consult a professional: Use tax software or consult a tax professional to help you prepare your taxes accurately and efficiently.

20. Stay informed:

• Stay up to date on tax laws: Stay informed of any changes to tax laws that may affect you.
• Consult a tax professional regularly: Schedule regular consultations with a tax professional to discuss your tax situation and explore potential tax savings opportunities..

Whether you rent or own, there are steps you can take now to save money now and in the new year. Now is a good time to do the right thing and put some extra money in your pocket in 2025!

Home and HearthHave a nice day AtlantaJohn Adams