{"id":1283,"date":"2021-03-08T10:00:32","date_gmt":"2021-03-08T15:00:32","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1283"},"modified":"2024-04-25T23:20:03","modified_gmt":"2024-04-26T03:20:03","slug":"healthy-wealthy-and-wise-age-at-home-your-way","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/healthy-wealthy-and-wise-age-at-home-your-way\/","title":{"rendered":"Healthy, Wealthy and Wise: Age at Home, Your Way"},"content":{"rendered":"\n
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To age in place is an increasing popular goal. Homeowners across\nthe country are renovating their homes to enhance accessibility and lengthen\ntheir independent, productive lives. Of course, there\u2019s a lot more to their goal-setting\nthan preparing to install ramps and handles. Owners are putting sound financial\nplanning into the mix. <\/p>\n\n\n\n

In this article, we lay out some thoughts on promoting well-being\nand home accessibility. We\u2019ll add tips on preserving value along the way.<\/p>\n\n\n\n\n\n\n\n

Safeguarding Community Ties by Creating an Accessible Home  <\/h2>\n\n\n\n

Growing older and staying at home can be hard to pull off,\nbut success starts with a solid plan. That could involve downsizing into a\nplace with nearby amenities for the older you. Homes in walkable areas become good\npicks when it\u2019s more difficult to drive. Thus, moving downtown is one idea to\nconsider. And it might be a little easier to move downtown affordably at this\ntime, given the recent wave\nof city dwellers who have moved to the suburbs<\/a> since mid-2020.<\/p>\n\n\n\n

For those who value their long-time homes and communities\ntoo much to consider moving, there are other ways to prepare for the physical\nsupport that matters later in life. For example, you could create a plan to keep\nyour home comfortable by modifying it \u2014 perhaps by creating a ground-floor\nliving space.<\/p>\n\n\n\n

Can you boost your home\u2019s accessibility factor without putting\na dent in your home value? There\u2019s no negative impact on value from the\naddition of smart\nhome features<\/a>, better lighting, portable ramps or removable, slanted\nentranceway decks, or easy-to-use faucets, latches and locks. Installing new\nflooring, banisters or grip bars, or even lowering features of a home to improve\nreachability, usually won\u2019t be a value issue.<\/p>\n\n\n\n

Of course, there are buyer preferences to consider. Big\nmodifications \u2014 lifts, stationary ramps, new plumbing fixtures or accessibility-focused\nbathrooms and kitchens \u2014 might have little appeal to future buyers. If they\nmake some features of a home harder for some buyers to use, the home becomes harder\nto sell. Then again, a professionally modified home is likely to appeal to\nmature buyers in the years ahead.<\/p>\n\n\n\n

 <\/strong>\u261b<\/strong> Today\u2019s sellers need to know: Do the Generations Look for Different Features in the Homes\nThey Buy?<\/a> <\/strong><\/p>\n\n\n\n

For you, the enhanced ability to enjoy your home can be\npriceless. Staying put has immense value for homeowners with close family or\nfriends nearby. Staying engaged with people and local activities might be the top\nfactor in preserving independence late in life. <\/p>\n\n\n\n

Tax Benefits of Enhancing Accessibility  <\/h2>\n\n\n\n


\nCreating accessibility and preserving home value is a balancing act. Granted,\nany decision to remodel comes with its mix of value enhancement and higher\nproperty tax exposure.<\/p>\n\n\n\n

For\u00a0home modifications that do not raise a property\u2019s value, costs may be deductible medical expenses, to some extent. As the Internal Revenue Service (IRS)<\/a> states: \u201cGenerally, you can deduct on Schedule A (Form 1040) only the amount of your medical and dental expenses that is more than 7.5%\u201d of your adjusted gross income.<\/p>\n\n\n\n

The IRS further explains<\/a> that the price of your alterations must be reduced by any property value boost when you deduct. The difference is deemed a medical expense. If the alteration doesn\u2019t raise your property value at all, then the full cost is deemed a medical expense.<\/p>\n\n\n\n

Certain modifications \u2014 such as a new, ground-floor bathroom\nor an elevator \u2014 can significantly boost a home\u2019s worth. It\u2019s best to consult\nwith a tax specialist before embarking on the alterations, to plan and time the\nwork to optimize tax savings. It’s also a good idea to have a home\nappraised before and after accessibility-focused alterations. This creates\nsolid evidence to show changes to a home\u2019s value.   <\/p>\n\n\n\n

Take before-and-after photos and save receipts. The IRS may\nrequest evidence and information on a taxpayer\u2019s home alterations to\nverify their medical necessity. Owners should have medical proof of the need\nfor the alteration. Note that medical expenses cannot <\/em>be claimed if\ninsurance or other parties paid for them.  <\/p>\n\n\n\n

Planning Major Upgrades? Call Your Local Building and Licensing Office<\/h2>\n\n\n\n

With a doctor\u2019s letter, an owner might be able to deduct a deck,\nor even a spa or pool, and the costs of running and maintaining the new\nfeature. But don\u2019t forget permits and new assessments. <\/p>\n\n\n\n

If you\u2019re building a deck or spa, adding a bathroom, or\ngrading a section of your yard for accessibility, you’ll need a permit. This\nmeans your tax assessment could go up. For example, installing a new pool adds\nvalue, ultimately raising the property tax bill. That can be partially offset\nby claiming a medical deduction. And if you\u2019re itemizing on your returns,\nyou\u2019ll get a break through property tax deductions. <\/p>\n\n\n\n

Professional contractors will handle the permit applications.\nPermits cannot be skipped. A seller whose alterations show up on a survey or\ntitle search, but are not matched by local permit records, can experience serious\ntitle issues. In contrast, permit and permit inspections done according to the\nrules should solidify the enhanced value of an upgrade.<\/p>\n\n\n\n

\u261b<\/strong> Readers planning substantial upgrades can check out Deeds.com<\/em>\u2019s\nguide to DIY\nRenovations: Everything You Wanted to Know (or Not) About Permits<\/a>.<\/strong><\/p>\n\n\n\n

Passing Your Home On: Planning a Perfect Handoff <\/h2>\n\n\n\n

Finally, there\u2019s the question of passing on a home you\u2019re\nkeeping for life. Is your home jointly owned? Will it automatically pass\nto a co-owner<\/a>? If not, discuss the next step with your lawyer or\nfinancial adviser \u2014 as well as your beneficiaries. If someone gets your home by\nsurprise, they might not have time to plan for things like maintenance, or a\npossible state estate tax (which can be triggered for a lower estate value\nthan the federal estate tax is). <\/p>\n\n\n\n

Popular ways to pass a home along include:<\/p>\n\n\n\n