Uncategorized

For many students and their parents, a college education is a top priority. With education costs continually rising, paying for a degree may seem difficult or impossible. Some parents consider using their homes equity to obtain funds for college but arent sure if that would be a wise move.

Benefits of Using Home Equity for Higher Education
Home equity can be easier to access than a traditional loan. To obtain an educational loan yourself, or for your child to obtain one, a lender would require a lengthy application and credit check. If you already have a mortgage and make payments on time, you may find it much easier to secure a home equity loan. If you already have a home equity line of credit, you can simply write a check to your childs university.

Federal student loan programs limit the amounts that can be borrowed each year. If your child will attend an expensive university, you may not be able to borrow enough to cover the entire cost. Meanwhile, your mortgage lender may allow you to borrow up to 90 percent of your homes equity.

Interest rates on home equity loans are generally lower than rates for loans offered by the federal government or by private lenders. The lower interest rate can make a home equity loan the most attractive option if you need to borrow to finance your childs education.

Danger of Using Home Equity
Using home equity to pay for a childs college education is very risky. If you suffered a financial hardship, such as a job loss or unexpected medical bills, you could have limited options to modify or delay your home equity loan payments. Using your home as collateral means you could lose it if you failed to repay the loan. On the other hand, if your child took out student loans, options such as forbearance, deferment, and loan forgiveness could be available to help in tough financial times.

Other Ways to Pay for College
A variety of grants and scholarships are available from universities, community organizations and businesses to help cover the costs of higher education. Your child could work part-time during the school year and work part-time or full-time during the summer. Another option is for your child to attend a less expensive university, at least for a year or two.

Think Carefully Before Tapping Into Your Homes Equity
Using your home to help cover the cost of college may seem like a good idea. While a home equity loan or line of credit can be easy to obtain and can have favorable interest rates, make sure you fully understand the risks. If you suffered a hardship and couldnt repay the debt, a mortgage lender would be less forgiving than a student loan servicer, and you could lose your home. Think things over carefully and explore other sources of funds, as well as the possibility of your child attending a different institution.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Getting rid of dead trees is more complex than many people realize, and you could run into an array of issues if you aren’t careful. Luckily, with the right equipment and a solid plan, you should be able to get that dead foliage off your property before you know it. Here are three things to keep in mind when removing dead trees from your property:

Don’t Start During Inclement Weather
Removing dead trees is extremely hazardous during certain times of the year. If there are high winds or the tree is covered in snow, for example, then you should probably put the project off for at least a few weeks. That said, a little bit of rain could actually help you out. The rainwater is going to saturate all of the soil around the tree, which will make it much easier to pull out the roots. You can also soak the ground with a garden hose if you’re carrying out this project during the dry season.

Always Use the Proper Safety Gear
Well before you start removing any trees from your property, make sure you have the proper safety gear. Without safety equipment, you could end up dealing with serious injuries, including lacerations, sprains, broken bones and head trauma. At the very least, you need to wear eye protection, ear protection and a hard hat when you’re removing the trees. You should also consider wearing high-quality gloves, thick pants, a heavy jacket and reinforced boots”clothes that’ll greatly reduce your risk of minor cuts and scratches.

Invest in the Right Equipment
You might want to search for some used construction equipment that you can purchase if the trees are relatively large. Cutting the trees into smaller segments with a chainsaw will get the job done, but that’s going to be very time-consuming. With some heavy equipment, you’ll be able to rip the trees up without cutting them into smaller pieces. Heavy equipment will also allow you to dig up the roots, which will prevent saplings from popping up in the future.

Removing one or two dead trees shouldn’t be too exhausting, but it’s always a good idea to hire professional contractors if you have more than a couple trees to get rid or have issues performing the task on your own. An experienced crew will be able to bring in construction equipment that you might not have access to, and many companies offer free disposal services on larger projects.

Source: Brooke Chaplan/RISMedias Housecall

Published with permission from RISMedia.

Here are four hallmark features that make the American Craftsman style so appealing.

Charming Facades

Often designed with overhanging eaves and large covered porches at the front entrance, a Craftsman home feels inviting before you even step inside.

Large Fireplaces

At the center of almost every Craftsman home is a fireplace that the family can gather around.

Natural Materials

Craftsman homes generally showcase an extensive use of wood and stone.

Thoughtful Details

Perhaps most importantly are the small details that make a Craftsman home stand out, such as beamed ceilings, built-in bookshelves and wainscoting.

Published with permission from RISMedia.

Renting out a property can be an excellent way to earn a living or to supplement your income from a job. Its important to understand what types of information youll need to include on your tax return and to keep accurate records to avoid penalties.

Whats Considered Rental Income?
Youll have to report all rental income on your tax return. That includes any regular rent payments, as well as rent paid in advance. If a tenant pays you to cancel a lease, that also counts as rental income. If a renter pays any of your bills, such as utilities, or provides services in lieu of regular rent payments, the cost of those bills or the fair market value of the services provided must be counted as rental income.

If a tenant pays a security deposit to cover the last months rent, that should be counted as rental income when you receive the money. Dont include a security deposit in your income if you plan to return the money when the tenant moves out. If you keep all or part of a security deposit to cover damage to the property or a violation of the lease, that money needs to be counted on your tax return as rental income.

Which Expenses Can Be Deducted?
You can deduct property taxes, mortgage interest, management costs, maintenance, utilities and insurance. You can also deduct expenses paid by a tenant if the Internal Revenue Service considers those deductible rental expenses.

You may not deduct the cost of changes to improve or restore a property or to convert it to a different use. You can deduct depreciation to recoup some or all of the cost of improvements.

How to Prepare for and File Your Taxes
Keeping accurate and complete records throughout the year will make things easier when it comes time to file your taxes and will help if you get audited. Include all money received for rent and all costs associated with ownership, management, maintenance and repairs, as well as costs to travel to the rental property to perform maintenance and repairs.

In most cases, youll need to report your rental income and expenses on Form 1040, Schedule E. The IRS has instructions to help you figure out which income and expenses should be included and how to calculate depreciation. If your expenses are greater than your rental income, or if you use a property that you rent out as a personal residence some of the time, the amount of loss you can deduct on your tax return will be limited.

Seek Professional Assistance
Owning a rental property can be lucrative, but you need to be mindful of how it can affect your taxes. Talk to an accountant so you understand what you must include on your tax returns, and keep detailed records of all income and expenses. If you dont want to handle record-keeping yourself, hire professionals to make sure everything is in order.

This article is intended for informational purposes only and should not be construed as professional or legal advice.

Published with permission from RISMedia.

Published with permission from RISMedia.