Tag Archives: downsizing

The Reality of Tiny House Living

Hillary's Tiny House outside

Could you imagine living in a house this small?

Small and tiny houses have increasingly become popular and known. Tiny House Nation and Tiny House Hunters TV shows have heightened the public’s interest in this style of living.

Tiny houses on wheels are often compared to RVs. However, tiny houses are built to last as long as traditional homes, use traditional building techniques and materials, and are aesthetically similar to larger homes. A tiny house is often considered one that is under 400ft2.

So, what’s it really like to downsize and live in a tiny house? We interviewed our friend Hillary who’s been living in one for the last 6 months. Her space is under 200ft2. The footprint of the home is 8.5’ x 18’ and it sits on a trailer.

Why did you choose tiny living? Basically, the cost of living. It was a creative way to afford rent, and work to live instead of living to work. Also, I was interested in the environmental benefits and owning less.

What surprised you most about tiny living? How comfortable it feels. I’m getting along really well! It took a leap of faith but there have been more positives than negatives. I’ve realized I don’t have to own a lot to be content.

What has been an unexpected benefit? Buying less stuff. Even less food. I don’t go to home stores anymore for random décor. I’ve saved money and affirmed to myself I don’t need as much stuff as I used to.

What has been the hardest part? Finding the right place to put my tiny home took about a year.  I ended up finding my landlord through an East Bay Tiny House meetup. He has 3.5 acres in Diablo Valley area so I am surrounded by nature but also able to connect into utilities. My water comes from a hose line. I have a direct electricity and sewer line hook up. I have propane tanks for heating water and gas stove.

Another challenge is the lack of space for food and clothes. Clothing storage has been the hardest. I still use some offsite storage at my mom’s house but hope to gradually eliminate that.

What was the process of downsizing your possessions like to prepare to move here? I’m still transitioning through the downsizing process because I’m still storing some furniture at my mom’s. Also, most of my book collection. I’m an English teacher and I’d really like to have my books with me but I haven’t figured out how to integrate them into the space. I still need to sell or donate extra stuff. I feel like I haven’t yet had the cathartic moment of truly releasing things that didn’t fit. Other people I’ve talked to in tiny houses have described how freeing it is to let go.  That said, I do realize that there are lots of things I haven’t needed or thought about for 6 months. I still want to take on the personal challenge of only owning what will fit in my space.

Kitchen, sleeping loft and bathroom

Tiny House Living Room and Entry

Kitchen, Living Room, Entry

STORAGE

Let’s talk about storage – how do you get by without a garage? Right now, I’m not fully addressing that; I still store low use items such snowboarding & camping supplies offsite. There is some space underneath the trailer where I can store tubs – I have my backpacking gear in a heavy-duty tote as well as extra blankets & shoes.

How have you had to modify your shopping practices? I shop more often and buy smaller amounts of things when I do. I’ve had to become more aware of what I’m buying. I still buy a few things in bulk and use the storage area adjacent to my sleeping loft to hold low-use pantry items such as baking supplies.

How do you get by without a closet and a dresser? The home does have a really thin closet – 1.5’ wide. I have to be very selective about what gets hung. Reducing clothes was hard because I like to have options of what I wear.  I use open crates in the sleeping loft for folded clothes.

Has living in a tiny house changed your relationship to stuff? Not dramatically, but I feel like I have a higher level of awareness of nice-to-haves vs. have-to-haves. And I’m OK with that. I realized I’m not feeling the loss of giving up on the nice-to-haves as much as I would have thought.

LIFESTYLE

How has the move affected your social life? Not too much. I do have folks come over. I haven’t had big gatherings but I have outside space so that could be used in good weather for gatherings. Having 2-3 people within the house is tight. Having over one extra person is pretty comfortable. I find myself sitting outside more often both when I’m alone or with others. Seating inside a little cramped, especially for tall or larger guests.

Do you have a full bathroom and shower? The toilet and shower are separate and spacious enough. They are average size. I have an on-demand water heater and originally I had a composting toilet but then was able to connect into the landlord’s sewer line so I replaced it with a regular flush toilet.

What life circumstances would have to change for you to feel like you have to move? I feel like I could live here indefinitely if I was living alone. Cohabitating with a partner doesn’t feel very feasible to me here.  If I had a child it feels like it would be feasible maybe for the first year or so.

What are people most curious about? Mostly they just want to know – “Is this working for you? Are you comfortable?”  Anyone who comes to visit quickly sees how doable it is!

Want to watch the entire interview? Let us know!

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Filed under Decluttering, downsizing, Guest Experts, home organizing, Moving, organizing, Perspective, Reduce/Recyle/Reuse

The 5 Types of Items Worth Holding Onto

Items-That-Will-Be-Worth-More-in-the-Future-750x485

This week we share a post by Brian Graves from Everything But The House (EBTH). This post first appeared on NextAvenue. 

Determining which collectibles have the potential to increase in value has changed drastically over the past 20 years. With the introduction of e-commerce, items once believed to be rare were made available en masse. And with previous generations of collectors in a position to divest their prized possessions, the forces of supply and demand may have never had a more profound impact on collecting.

For centuries, there were cyclical styles of items that could be acquired when they were out of favor with the knowledge that eventually they’d come back in vogue. It’s why you hear some furniture styles described with the term “revival” after their name (there was the original period and then the period where they were revived).

So, what makes something popular and worth holding onto? Well, as the founder and Chief Learning Officer of the estate sale company and auction platform, Everything But The House (EBTH), I’d say it’s the herd mentality. When I started collecting in the 1990s, the predominant design themes in the average American home included Southwestern patterns in pastel tones (mauve, teal, peach) and traditional furnishings with Grecian patterned upholstery in burgundy, gold, and hunter green. At the time, Midcentury Modern furnishings were only starting to regain a following. I recall pulling a pair of DUX Midcentury Modern chairs out of the garbage and proudly sold the pair at a show the following weekend for $150. If I had known then what I know now, I might have held out for more.

My point is that by the time you know something is in demand, it’s often too late. Therefore, in order to know what might be worth holding onto, you have to be able to do something most of us can’t: see into the future. Still, there are five keys to knowing which possessions offer promise:

1. Items that are either one-of-a-kind, handmade by a skilled artist or craftsperson or made in limited quantities will always be in demand. For instance, curating an art collection of living artists can be a good investment strategy. But not always. So pair this rule with the following three points: 1) Buy the art to enjoy it. 2.) Don’t invest more than you’re comfortable losing. 3.) Diversify.

2. Items made of high-quality materials by notable firms will always have an audience. Names like Hermès, Chanel, Tiffany and Cartier get collectors to pay closer attention. They’re like buying blue-chip stocks. These firms have stood the test of time and shown they have what it takes to maintain consumer interest, even if that means reinventing themselves. The items won’t necessarily appreciate in value, but they are much less likely to depreciate if kept in good condition.

3. Other collectibles to consider are ones that remind us of our youth. Once a generation reaches middle age with disposable income (usually older than 35), they tend to collect objects that remind them of their yesteryears. This transcends categories and applies to toys, books and even vehicles. For instance, in recent years, He-Man action figures from the 1980s have appreciated to values exceeding even earlier generations of toys such as G.I. Joe figures from the 1960s.

But the timing on the sale of these types of objects is critical. A rule of thumb: consider selling nostalgia items 25 to 35 years after they originally became popular. It’s important to note that the earliest editions —produced in limited quantities before the category became popular enough to justify increased production — command the highest prices.

4. Consider holding onto items connected to unique events or people in history but that were intended to be discarded. These are often referred to as ephemera. The key here is that the item must be one-of-a-kind or hard to come by.

For example, many people held onto newspapers reporting the assassination of President John F. Kennedy and the moon landing, so they’re not rare and therefore not valuable. But if you held onto an early promotional poster for The Rolling Stones from the same timeframe, you would have more than enough to pay for a nice vacation after selling it.

5. Another category to consider: objects that have a tangible value based on what they’re made of. Precious metals such as silver, gold, and platinum all have an associated market value, which is readily identifiable and allows for immediate liquidity. Antique or high-quality examples of these objects can often have values worth two to 10 times the value of the precious metal itself or even more. But profiting from less desirable, and more common, examples — such as bullion coins or damaged serving pieces — depends on the current price of the metal. Silver, for instance, is currently worth about 1/3 what it was in 2011, but that’s still about three times as much as in 2001.

So what would I recommend keeping that might be worth more money down the road? Well, nothing really. You should only hold onto something if you love it, use it and have a place in your home for it. Be careful not to become too hung up on hanging onto collectibles in the hopes they might go up in value, especially if you don’t have the space for them. Most collectibles fall out of favor in time. My advice: be cautious about holding onto items which create clutter and cost money to store and care for, coupled with no guarantees.

If you want to get a glimpse into which types of objects people are most interested in collecting today, click here to see the most followed objects at my company’s site, EBTH.com.

by Brian Graves July 20, 2017

Brian Graves is founder and chief learning officer at Everything But The House (EBTH), where he uses his extensive knowledge of history, antique valuation and authentication to help maximize value for clients. A longtime collector and a graduate of the Mendenhall School of Auctioneering, Brian founded EBTH in 2008 with Jacquie Denny, after years spent buying, refurbishing and reselling antiques in his spare time.

EVERYTHING BUT THE HOUSE (EBTH) is the only online estate sale company that combines high-touch customer service with the reach of an e-commerce site. Their full service model— photography, cataloging, payment and delivery – makes the entire process of planning and managing an estate sale easy and seamless.

 

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Filed under artwork, Decluttering, downsizing, Garage, Guest Experts, Moving, Perspective

Perspectives on Letting Go

freedom release letting go

Ahh, attachments to our stuff. It’s really all a mental game. If we were truly able to assess our belongings according to our practical needs, we would probably be living with 10% of what we own.

Why is letting go so hard? How do we manage the psychology of releasing things?

Over the years, we’ve seen people find success with one (or a combination) of these three approaches:

Focus on how you can help yourself

Honor the life you want to live. Have a vision of how you want to be in the world and edit your stuff so you can match that and live your best life now. This is about releasing the past and creating your ideal future. You’re honoring yourself by letting that be your focus.

Focus on how you can help other people

Recognize that your excess is a form of abundance. Release your objects so they can serve their purpose in other people’s lives. Release resentment or other negative emotions that the objects bring up in you and put them out into the world to do positive things for other people.

Feng Shui expert Karen Kingston tells a story of a divorced woman had a pair of large, expensive decorative urns from her divorce settlement. They were beautiful but made her think, with bitterness, of her ex-husband.  She was encouraged to sell them and get a lot of money for them instead of having them foster bitterness and resentment and a constant reminder of a painful relationship.

Focus on how you can help the environment

Bringing in less can aid the environment, but disposing of things in a thoughtful way will help offset the environmental impact of consumption. Some people hesitate to clean out a closet or garage because they don’t want it all to go to landfill. Take advantage of living in the San Francisco Bay Area which is filled with easy options for recycling/reuse and responsible disposal.

Stopwaste.org is a quick way to find what is available near you. There are many places that accept e-waste, expired medicines, CFLs, hazardous waste, styrofoam, packing peanuts and air-packs. Partially used art and office supplies can go to the East Bay Depot for Creative Reuse or S.C.R.A.P., building materials and hardware can go to Urban Ore or a Habitat for Humanity ReStore outlet. Plastic children’s toys, if not donate-able, can be recycled with hard plastic at most urban recycling centers. There are also resources for your unneeded medical equipment (wheelchairs, walkers, tubing, etc.)

Freecycle, Craigslist, Nextdoor, and other community neighborhood forums are great places to post usable items for free.  These places allow you to find people who want your cast-offs and will take care of the hauling!

If you don’t want to deal with the public, you can pay for a hauler to come. EcoHaul, 1-800-Got Junk, Lugg are companies that advertise responsible disposal of items the remove from your place.

There is no “right” approach. What is that key that will release you from the obligation to hold on to things you don’t need and really don’t even want? Not sure how to get rid of something? Just ask! As Professional Organizers, we’ve got ideas!

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5 Tips for Helping Your Parents Downsize

mom-daughter

Are your parents ready to move? Maybe one is thinking about moving but the other isn’t ready? Are you worried about their safety and think they should be thinking about moving but they don’t seem interested at all?

Assess the situation and be realistic. Deciding to downsize is process with many layers and chapters. Where are your parents in that process?

  1. Not ready. Can’t see themselves leaving home
  2. Considering the possibility, but not convinced
  3. Ready but don’t know where or how
  4. Ready and have a plan

Assuming your folks ARE ready to move and are just getting started, here are some tips for helping you successfully help them:

  • Your pace may not be their pace. Be respectful and mindful of where your parents are at in the process of being ready to move. You’ll only be able to go as fast as they are capable and willing to. Understanding their resistances rather than fighting them will enable you to better tailor your message to their ears.
  • Help assess their immediate needs. Are they or you considering moving because of a need around safety, health, hygiene, housekeeping, meals, or social life? Help identify solutions to challenges in these areas while they are still at home if possible.
  • Don’t let your attachments hold them bac Can’t believe they are wanting to get rid of the special quilt Aunt Mary made? Then you take it!
  • Don’t take sides. When one person in the couple wants to move but the other doesn’ Generally, unless health and safety are at risk, there are many pros and cons to moving – all subject to a particular person’s perspective. Remember that the negotiation process between couples is complicated and not so much about right and wrongs as it is about finding a set of solutions that both can live with.
  • Offer to find resources. Downsizing and moving can require a lot of research and using different vendors – offer to research and coordinate potential resources that may be needed during the process. This can allow your parent to focus on the work of sorting and decision making.
    • Estate sale folk, auction houses, online auctions: who is in the area? How do they work and what percentage do they take? What happens to the things not sold?
    • Thrift stores – which ones will come pickup from the house? Which ones require staging things outside? Who will take what?
    • Hazardous waste – how to get rid of leftover cleaners and chemicals in your area? (stopwaste.org) Are free pickups offered for seniors in your area?
    • Free city bulky waste pickups – most cities offer at least 1 per year but all have different rules about how to schedule them, what can be picked up, and how items have to be organized at the curb.
    • Movers & packers – find out rates, ranges, and availability. Check reviews and call references
    • Professional moving/organizing help – Sometimes an extra hand is needed to make the move happen. NASMM.org and NAPO.net both offer search pages to find professionally trained help in your area.

Additional resources you may find useful:

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Filed under Bay Area Services, children, Decluttering, downsizing, Empty Nest, Perspective

Ten Myths About Aging and Health

Is aging feeling like a monkey on your back?

Dana has just returned from the annual NASMM conference. One of the most inspiring speakers was Ashton Applewhite whose work focuses on battling ageism. This is a repost of one of her blogs.

Originally posted by Ashton Applewhite, This Chair Rocks

All around the world, people are living longer—a basic hallmark of human progress, and a triumph of public health. The World Health Organization (WHO) is in the public health business, and no organization has done more to raise awareness of ageism—the biggest obstacle to meeting the challenges of population aging and capitalizing on the “longevity dividend.” Part of the WHO’s global anti-ageism campaign  is a new list of ten common “misconceptions on ageing and health.” The global perspective is instructive, and it’s making me rethink some things—including the burning question of whether to start spelling “ageing” the logical, British-and-Indian way.

1 – There is no typical older person.

That would top my list too. Stereotyping—the assumption that all members of a group are the sameunderlies all prejudice. Of course stereotypes always a mistake, but especially when it comes to age, because we all age in different ways and at different rates. As geriatricians put it, “Heterogeneity is the hallmark of ageing.” Or, less formally, “If you’ve seen one 80-year-old, you’ve seen one 80-year-old.”

2 – Diversity in older age is not random.

Spoken like a tactful epidemiologist! WHO is pointing out that the playing field is far from level: “The physical and social environments in which we live are powerful influences on Healthy Ageing” and are further shaped by “our sex, our ethnicity, and financial resources.” As I write in the manifesto, “The way we grow old is governed by a whole range of variables, including environment, personality, and genes, compounded by class, gender, race, luck, and the churnings of the global economy—over which we have varying degrees of control.” The effects compound each other and add up over time, which is why the poorest of the poor, all around the world, are old women of color.

3 – Only a small proportion of older people are care dependent.

“Care-dependent” is a great way to put it. I tend to frame this in terms of the high percentage of Americans over 85 who live in nursing homes (10 percent) and who can go about their everyday activities without any personal assistance (over half).  The WHO frames this in economic terms as well, drawing on recent research showing that the contributions of olders in the UK “were worth nearly GBP 40 billion more than expenditure on them through pensions, welfare and health care combined”—a figure set to nearly double by 2030.

4 – Population aging will increase health-care costs but not by as much as expected.

The notion that older North Americans are an inevitable sink for healthcare dollars is incorrect, and the WHO makes the international case. “In high-income countries, there is growing evidence that at around age 70, health-care expenditure per person falls significantly, with long-term care filling the gap,”the WHO observes, so it makes sense to invest in long-term care. Aging influences health care expenditures far less than other factors, especially expensive medical technologies. Related predictions that “too many old people” will tank the economy—debunked here—are biased, outdated, and just plain wrong.

5 – 70 is not yet the new 60.

I take issue with claims like “60 is the new 40!” because they’re based in denial—60, no matter how active, is still 60—but I’ve been assuming that we’re generally healthier and more vigorous than the generations that preceded us. Not so, says the WHO. Although severe disabilities may be less common, “no significant change in less severe disability has been observed during the past 30 years.”

6 – Good health in older age is not just the absence of disease.

“The combination of a person’s physical and mental capacities (known as intrinsic capacity) is a better predictor of their health and wellbeing than the presence or absence of disease,” notes the WHO, suggesting that we focus on improving intrinsic capacity rather than on specific ailments.  As I write in the book, “While physical decline is inevitable, poor health is not.” People get chronic conditions but we learn to live with them. We find ways to keep doing the things we love—versions of them, at least. No single age-related condition affects most older people. Some of the oldest of the old live well not by avoiding illness, but despite it.

7 – Families are important but alone cannot provide the care many older people need.

“While families will always play a central role in long-term care, changing demography and social norms mean it is impossible for families alone to meet the needs of care dependent older people,” the WHO points out, calling for training and supporting caregivers and for the government and other sectors to share responsibility. It’s the absence of publicly funded support that turns caregiving into a burden—one that falls largely on women. How about paid family leave and subsidizing care for people of all ages? How about a guaranteed, collective, universal right to long-term care that gives women the same options that men—white men with good jobs, at least— have always enjoyed? How about providing decent wages, health and unemployment insurance, and a path to citizenship to those we pay to do this intimate and important work? Which would allow families to do what they do best: be family instead of nurses and administrators.

8 – Expenditure on older populations is an investment, not a cost.

Programs that help olders stay mobile and functional require funding, but what’s often omitted from the accounting is the cost of not making these investments. “These investments can yield significant dividends, both in the health and well-being of older people and for society as a whole through increased participation, consumption and social cohesion,” says the WHO. Some of the return on investment is direct. For example, better healthcare leads to better health, which saves money, improves lives, and allows people to contribute to what AARP calls the “longevity economy.”  Some is indirect, helping societies protect the human rights of their older members and enabling them to live with dignity.

9 – It’s not all about genes.

“While Healthy Ageing starts at birth with our genetic inheritance, only approximately 25% of the diversity in longevity is explained by genetic factors.” I remember how surprised I was to learn that, from none other than geriatrician Robert Butler, who coined the term “ageism” and founded the National Institute on Aging. “It’s really never too late to reinvent yourself and to invent different health habits. Only about 25 percent of our health appears to be due to genes. Seventy-five percent is environmental or behavior,” Butler told me. That why WHO recommends that policies “address these person-environment interactions across the life course.”

10 – Mandatory retirement ages do not help create jobs for youth.

“Policies enforcing mandatory retirement ages do not help create jobs for youth, but they reduce older workers’ ability to contribute. They also reduce an organization’s opportunities to benefit from the capabilities of older workers,” write the WHO. Indeed: the exchange of skills across generations is the natural order of things, but in much of the developed world age discrimination in the workplace has subverted it. Another false dichotomy is that older workers take jobs away from younger ones. Economists call this the fallacy of the “lump of labor.”When jobs are scarce, this is true in the narrowest sense, but that’s a labor market problem, not a too-many-old-people problem. A 2012 Pew Charitable Trusts study of employment rates over the last 40 years found rates for younger and older workers to be positively correlated. In other words, as more older workers stayed on the job, the employment rate and number of hours worked also improved for younger people.

Want older people to be healthy?  End ageism

A growing body of evidence shows that attitudes towards aging have an actual, measurable, physical effect on how we age. People with more positive feelings about aging behave differently from those convinced that growing old means becoming irrelevant or pathetic. They do better on memory tests and are less likely to develop the symptoms of Alzheimer’s disease. They can walk faster and are more likely to recover fully from severe disability. And they actually live longer—an average of seven and a half years. Everyone agrees that health has the biggest effect on how we age—and how much it costs. Think what a global anti-ageism campaign would do to extend not just lifespan but “healthspan.”

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Ways to Get Things Out of (and Into) Your House

Are you downsizing or relocating? Or just have some stuff you want removed from your house? Every now and then need a couple of strong guys to deliver furniture or take away a big load of donations?

These 3 options provide ways to jettison the stuff you don’t want.

remoov

Remoov

Remoov is a company that takes everything away and sells or donates, recycles and trashes items you don’t need. They literally “remove” everything, sell what they can and give you the difference between the cost of the moving and processing and 50% of the proceeds from the sales of items. They curate to get the best price for the items. They sell items through their online auction site: TheLocalFlea.com.

  • 50% of the value of the sold items
  • Donation receipt for your taxes
  • Your junk responsibly discarded
  • A new home for your unwanted items

They are committed to reducing waste by increasing recycling and reuse of products. The timeframe for the removal of items can be quite short.  Getting money back from items sold can take many weeks.  Pricing is easy to figure with their online graphic.

MaxSold (1)

MaxSold

Having an estate sale is a one traditional way of clearing a home. MaxSold is an ONLINE only version of an estate sale.

What do you have to do to prepare? Separate items you want to keep from those you want to sell. Items for sell will be grouped into “lots”, photographed, put into an online catalog and marketed locally. Viewers of the auction have 1 week to bid on items. Pickups are scheduled for 1 day in particular time slots and managed by MaxSold staff. Purchasers must show ID and proof of purchase before being escorted to pickup their “lots.”

The whole process takes 2 weeks end to end. Max Sold charges 30% or $10 per lot OR $1000 overall whichever is higher. MaxSold does not handle donation or disposal of items that don’t sell.

lugg

Lugg

Think of this as Uber for movers. On-demand or by schedule you can get 2 guys to load, haul, deliver or move things within a home. A simple to use phone app lets you set your pickup location, add a photo of items to be handled, get an instant quote, and movers can be on their way within 30 minutes. You can also schedule a date & time in the future if needed. Currently only available in SF Bay Area (all counties) and Los Angeles. Drop-off point can be up to 150 miles from pickup.

Examples of when to use:

  • Bringing home furniture from IKEA or another store
  • Taking away boxes of books for donation
  • Taking away a load of junk to the dump
  • Moving furniture between rooms of the house
  • Pickup a craigslist purchase and deliver to your house

These are only 3 of many different ways to declutter and downsize. When you’re ready, help is available!

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Organize Home Receipts Now For Big Bucks Later

plans

Don’t just save the plans after a remodel – save receipts too!

Sheila is 85 years old and has decided to downsize into a retirement community. Her house is worth a whole lot more than what she paid for it 60 years ago. Let’s say she paid $25K and is able to sell the house for $625K. That means she may have to pay taxes on as much as $600K profit – or gain (minus a $250K exclusion the IRS grants).

Sheila’s accountant tells her she could pay significantly less taxes because she can add the costs of various improvements she made over the years of ownership to the base amount she paid for the house. This is called increasing the cost basis of the home. But where is the documentation?

This is where being organized comes in handy. With a simple system, homeowners can preserve the records of improvements they have made to their property. When the house sells and the accountant is asking for ways to reduce your tax burden, the seller can produce the receipts and records which could save them thousands. Selling the family home and moving is stressful enough without adding last minute scramble to dig up old documentation.

The simplest system is a single file drawer or filing tub to hold all the purchase and improvement related documents. From there you can get more organized if you desire by separating different types of documents into different folders. If you’re planning a full remodel or major improvement it is helpful to keep all the permits, contracts, inspections, receipts and invoices together labeled by the name of the project.

Here is specific info from the IRS’s publication, Pub 523 – Selling Your Home, which outlines what qualifies as a cost basis improvement

Improvements

These add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of additions and improvements to the basis of your property.

The following chart lists some examples of improvements.

home improvements chart

Repairs done as part of larger project.   You can include repair-type work if it is done as part of an extensive remodeling or restoration job. For example, replacing broken windowpanes is a repair, but replacing the same window as part of a project of replacing all the windows in your home counts as an improvement.

Examples of improvements you CANNOT include in your basis.

  • Any costs of repairs or maintenance that are necessary to keeping your home in good condition but do not add to its value or prolong its life. Examples include painting (interior or exterior), fixing leaks, filling holes or cracks, or replacing broken hardware.
  • Any costs of any improvements that are no longer part of your home (for example, wall-to-wall carpeting that you installed but later replaced).
  • Any costs of any improvements whose life expectancy, when installed, was less than 1 year.

Exception.   The entire job is considered an improvement if items that would otherwise be considered repairs are done as part of an extensive remodeling or restoration of your home. For example, if you have a casualty and your home is damaged, increase your basis by the amount you spend on repairs that restore the property to its pre-casualty condition.

Obviously everyone’s tax situation is unique and there are other variables that can affect the picture, even year-to-year. We are simplifying for the point of illustration.

So no matter when you bought your home, now is the time to gather up all the house related receipts and start keeping any original improvement receipts. If you neglected to keep them, at least make a list of known improvements and try to estimate what you spent.

Did you find this article helpful? Let us know!

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