Who, or what's to blame for lake's problem smell? - Local History ...
Who, or what's to blame for lake's problem smell? - Local History ...
Who, or what's to blame for lake's problem smell? - Local History ...
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Thursday, JUly 21, 1994<br />
Minimize your home improvement costs<br />
Maklng IJnprovements can do m<strong>or</strong>e<br />
than improve the appearance <strong>or</strong> comf<strong>or</strong>t<br />
of your home. hc<strong>or</strong>chng <strong>to</strong> the<br />
MIchIgan AssOC!atlon of CPAs<br />
(MACPA), spenchng money on certam<br />
improvements now can offer you Slgmficant<br />
tax savings later.<br />
Tax law clearly differentiates<br />
between home repairs and capital<br />
improvements - the improvements<br />
that offer you tax advantages. Repairs<br />
keep <strong>or</strong> rest<strong>or</strong>e property <strong>to</strong> good w<strong>or</strong>king<br />
condition. Examples of repairs<br />
include repainting, fixing a broken<br />
wmdow <strong>or</strong> fixing gutters. Capital<br />
improvements, on the other hand,<br />
increase the value of your property,<br />
lengthen Its life <strong>or</strong> adapt it <strong>to</strong> a different<br />
use. Examples include remodeling<br />
a kitchen <strong>or</strong> bathroom, creating a master<br />
swte, adding a fireplace <strong>or</strong> putting<br />
aluminum siding on your home.<br />
Expenses mcurred f<strong>or</strong> capital improvements<br />
can be added <strong>to</strong> the basis of your<br />
residence - that is, the <strong>to</strong>tal amount<br />
you paid f<strong>or</strong> the property. When you<br />
sell your residence, the taxable gain is<br />
determmed by subtractmg your b8Sls<br />
in the home from the sellIng pnce. The<br />
greater your basis, the lower your taxable<br />
profit.<br />
Be sure <strong>to</strong> keep receIpts f<strong>or</strong> all your<br />
capital expenditures. This WIn keep<br />
you from overlooking expenses that can<br />
increase your basis and will enable you<br />
<strong>to</strong> substantiate your capital gain calculation<br />
should the IRS ever question it.<br />
Bef<strong>or</strong>e making a home improvement,<br />
it's WIse <strong>to</strong> consider whether<br />
you'll be able <strong>to</strong> recover its cost when<br />
you sell your home. Certain features<br />
are m<strong>or</strong>e valued by home buyers than<br />
others and, consequently, are m<strong>or</strong>e<br />
likely <strong>to</strong> add <strong>to</strong> your home's market<br />
value. Today, you're likely <strong>to</strong> recover<br />
costs f<strong>or</strong> expanding a master bedroom,<br />
adding an office <strong>or</strong> study <strong>or</strong> building a<br />
new bathroom. However, adding a<br />
greenhouse <strong>or</strong> installing a hand-l8ld<br />
brick wall <strong>to</strong> your front do<strong>or</strong> is not lJkely<br />
<strong>to</strong> offer you the same payback when<br />
you sell your home.<br />
Also, don't undertake projects that<br />
plevate your property's value above the<br />
neighb<strong>or</strong>hood nonn. If the houses m<br />
your community generally sell f<strong>or</strong><br />
about $100,000 and your home<br />
Improvements would boost your home.<br />
's value <strong>to</strong> $150,000, chances are you<br />
won't recover your costs.<br />
How you finance your improvement<br />
will affect its ultimate cost. It's wise <strong>to</strong><br />
finance as much of the improvement as<br />
possible with cash, thereby avoiding<br />
hefty interest charges. If you can't<br />
come up with sufficient cash, consider<br />
taking out a home equity loon <strong>or</strong> b<strong>or</strong>rowing<br />
against a home equity line of<br />
credit. The interest rate on such loans<br />
is usually less than that charged by<br />
banks f<strong>or</strong> home improvement and<br />
other loans. What's m<strong>or</strong>e, except f<strong>or</strong><br />
certain hIgh-income individuals who<br />
are subject <strong>to</strong> an overall reduction in<br />
itemized deductions, generally you can<br />
fully deduct interest pald on home<br />
equity loans. However, since you are<br />
usmg your home as collateral, be sure<br />
YourHome Page 3<br />
you b<strong>or</strong>row only an amount that you<br />
are capable of repaymg.<br />
AVOId usmg your credit card <strong>to</strong><br />
finance home improvements. Interest<br />
rates on maj<strong>or</strong> bank cards are usually<br />
hIgh and can tack on thousands of dol.<br />
lars <strong>to</strong> the actual cost of the Improvement.<br />
Bef<strong>or</strong>e mOVIng ahead Wlth a maj<strong>or</strong><br />
Improvement, be sure <strong>to</strong> get pnce<br />
quotes from several contract<strong>or</strong>s. Have<br />
a budget In mind and ask the contract<strong>or</strong><br />
<strong>to</strong> outline In wnting the speClfic<br />
w<strong>or</strong>k that will be completed based on<br />
the budget you established. Ask the<br />
contract<strong>or</strong> <strong>to</strong> show you pho<strong>to</strong>graphs of<br />
Slmllar projects completed on sinular<br />
budgets.<br />
Finally, be sure <strong>to</strong> check contract<strong>or</strong>s'<br />
references. The MACPA recommends<br />
that you ask each reference if<br />
the Job was completed on time and<br />
within budget. This will gIve you a<br />
good idea of whether your home<br />
improvement will be completed in a<br />
tlmely and cost-effectlve manner.<br />
Detroit Edison incentives available f<strong>or</strong> home construction<br />
After investIng thousands of dollars<br />
<strong>to</strong> remodel <strong>or</strong> build a new home, the<br />
last tffing a homeowner needs is high<br />
energy bills<br />
Detroit Edison cus<strong>to</strong>mers who qualify<br />
f<strong>or</strong> the utility's Energy-Efficient<br />
Home Constroction Program not only<br />
pay lower annual energy bills compared<br />
WIth conventIOnal homes, but<br />
also could qualify <strong>to</strong> receIve up <strong>to</strong><br />
$5,000 in incentIves from the utJlity.<br />
1__<br />
US WHAT YOU WANT•..IT'S AS GOOD AS DONE, TM<br />
- EIGHT OFFICES TO SRRVR YOU-<br />
The home constructlon program<br />
offers builders and homeowners mcentIves<br />
f<strong>or</strong> instalhng energy-efficient<br />
wall and cellmg msulation, WIndows,<br />
lighting, maj<strong>or</strong> electric appliances and<br />
high-efficiency cooling. Additionally,<br />
homeowners qualify f<strong>or</strong> DetrOIt<br />
Echson's lower time-of-day rate The<br />
program is available <strong>to</strong> owners and<br />
bUIlders of "all.electric" homes, which<br />
are homes eqUIpped Wlth electnc heat.<br />
H_o_u_s_e_h_o_l_d_H_e_l_p __<br />
Whether your home IS new <strong>or</strong> old, it<br />
should be waterproofed, especially<br />
basement and crawl space walls<br />
where the entry of water and<br />
mOisture ultimately leads <strong>to</strong><br />
deteri<strong>or</strong>atIOn and damage. With a httle<br />
know-how and the right <strong>to</strong>ols, you can<br />
eaSily waterproof areas where leakage<br />
has started <strong>or</strong> prevent it in areas<br />
where It may occur. To get started,<br />
you'll need the following <strong>to</strong>ols and<br />
products' hammer, chisel, wooden<br />
paddle trowel, wire brush, large pail,<br />
heavy.'duty masonry paint brush,<br />
hydraulIc water-s<strong>to</strong>p ce~ent and<br />
waterproofing masonry coatIng.<br />
r<strong>or</strong>.;:E THE SOURCE AND<br />
PREPARE THE SURFACE: Inspect<br />
the walls and locate the source of the<br />
leakage. Once you've found it, use<br />
your hammer and chIsel it <strong>to</strong> enlarge<br />
the crack <strong>or</strong> hole ~ut square~y <strong>or</strong><br />
undercut while enlargIng the caVIty <strong>to</strong><br />
a mmimum depth and width of ~/4<br />
lOch, then remove all loose mater~al<br />
from the cavIty and scrub WIth a WIre<br />
brush and water.<br />
PREPARE MIXTURE AND APPLY<br />
TO SURFACE. Prepare a miXture oC<br />
one part water and 4 1/,2 par~s<br />
hydraulic water.s<strong>to</strong>p cement 10 a pall<br />
and roll the mixed amount in your<br />
hands until you feel it begin <strong>to</strong> stiffen<br />
and become warm (only mix as much<br />
as you can apply in a three-minute<br />
period). Beginnmg at the <strong>to</strong>p of the<br />
crack <strong>or</strong> hole, press the cement in<strong>to</strong><br />
the cavity with your fingers and<br />
maintain pressure f<strong>or</strong> a few minutes<br />
<strong>or</strong> until the cement sets Then smooth<br />
the surface with a trowel. (W<strong>or</strong>k<br />
gloves should be w<strong>or</strong>n when<br />
completing this step.)<br />
APPLY WATERPROOFING<br />
MASONRY COATING: When the<br />
cement has set, the entire area should<br />
be painted with a wlltprproofing<br />
masonry coating Remove any paint,<br />
loose m<strong>or</strong>tar <strong>or</strong> dirt with a wire brush<br />
and water Next, mix masonry coating<br />
and water acc<strong>or</strong>ding <strong>to</strong> instructIons on<br />
package. Dampen the surface WIth a<br />
hose Just bef<strong>or</strong>e usmg a masonry paint<br />
brush <strong>to</strong> apply the mIxture in a<br />
circular scrubbing motIon <strong>to</strong> ensure<br />
penetration of waterproofing<br />
Ingredients. FIrst coat should dry f<strong>or</strong><br />
24 <strong>to</strong> 48 hours bef<strong>or</strong>e applying second<br />
coat Waterproofing masonry coating<br />
will continue <strong>to</strong> cure and harden f<strong>or</strong><br />
one month.<br />
Should you have any questions<br />
about this job, call the QUIKRETE<br />
Companies at 1-800-282-5828. They<br />
are the helpful people who provided<br />
the above inf<strong>or</strong>mation and will be<br />
happy <strong>to</strong> be of 888istance.<br />
ing and cooling systems.<br />
"Home constructJon - whether<br />
building new <strong>or</strong> remodeling - is an<br />
expensive venture," saId WJ1ham<br />
Steele, bwlder h8lson f<strong>or</strong> DetrOIt<br />
Echson.<br />
"This program helps homeowners<br />
A RAREFIND~~~~~~<br />
EvelyWoods four bed<br />
room Colonial. First<br />
flo<strong>or</strong> library, new<br />
kItchen with oak cabinets<br />
and ceramic flo<strong>or</strong>.<br />
Remodeled bath and<br />
freshly painted throughout.<br />
Call Marilyn Kenzie<br />
704.6013<br />
Sup