If you own a home, you might want to start thinking about the IRS. According to Julian Block, author of “The Home Sellers’ Guide to Tax Savings” (PassKey Publications, $19.95), there are ways to lighten your tax load whether you’re living in your home or selling it.

Here are some top home seller tax tips:

1. Marriage penalty? Not when you’re selling a home.

Getting married? Are you a newlywed? The IRS bestows a gift on newlyweds who each own homes that they sell before or after their trip down the aisle. On their joint return, each spouse can exclude as much as $250,000 of gain, provided each spouse could exclude up to $250,000 if he or she filed separately. Unfortunately, one spouse can’t use any part of the others unused exclusion, so as to exclude gain of more than $250,000 per person. (Individuals may exclude up to $250,000 in gain on their home sale and married couples may exclude up to $500,000 when they file jointly.)

2. Bundle ordinary repairs into a bigger job.

If you’re debating whether to save up for a major renovation but still have a few repairs around the house that need attention, think about bundling them together (if your repairs can wait). Block says your home’s adjusted basis (which consists of the property’s purchase price plus the cost of purchase, sale, structural improvements, legal fees paid to defend or to perfect title, zoning costs, and the cost of selling the property) includes only the cost of permanent improvements (including replacing a roof or building an addition) so it might pay to postpone repair projects until they can be done in connection with an extensive remodeling or restoration project. Adding the smaller jobs into the bigger job may allow you to include some items that would otherwise be considered repairs, such as the cost of painting rooms.

3. Don’t forget to deduct points paid when you financed or refinanced your mortgage.

When refinancing an existing mortgage, or if you pay off the loan early, take a deduction in the payoff year for all remaining points you were charged when you obtained the loan. For example, if you refinanced your mortgage and paid points in the amount of $2,000 and have deducted $400 over the years, you can deduct the balance of $1,600 in the tax return for the year in which you refinance the property. If you refinance, check on whether you need to increase or decrease the amount taken out for federal income taxes from your paychecks or to increase estimated payments. If you will need to pay more to the IRS, you should increase your withholding or quarterly estimated payments. And, if you will owe the IRS less, you can decrease those payments to the IRS. To revise your withholding, file a new Form W-4 with your employer.

4. It may make more sense to prepay your credit card debt – not your mortgage.

If you find you’ve got a little extra cash on hand at the end of the month, you might be thinking about throwing a few dollars toward paying off your mortgage. And why not? It would be great to own your home debt-free. But if you also have credit card debt, you should instead take those bucks and pay down your highest interest rate debt. For someone in the 30 percent tax bracket (federal and state), an investment would have to yield a whopping 26 percent before taxes to match the benefit available from just paying off a credit card costing 18 percent. And with mortgage interest rates near historic lows (this week, a 30-year fixed rate mortgage can be had for about 4.5 percent), paying off a credit card makes much better financial sense. And the tax tip: Mortgage and home equity interest is tax-deductible if you itemize on your federal income tax return.

There are other tax deductions and perks available for homeowners. In his book, which is available at Amazon, Block takes homeowners through foreclosure and short sale tax issues. And for more personalized information, consult with your tax preparer, accountant or enrolled agent.

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I learned two interesting things this past weekend.

The first is that lightning can strike at any time and it can hit close to home. The second that you need to make sure your insurance policies are up to date and that you have the right insurance carrier to help you out.

Do you have insurance for Lightning Strikes? Would you be prepared if you had a total loss?

Early Saturday morning, we were awakened by a loud storm passing by. The lightning was fierce. At about 1:30 one strike felt like it hit near our home. I got out of bed and wandered around the home and looked out the windows to see if our home or any neighboring trees or properties had been hit. Lightning had not struck our immediate vicinity but had hit the house of a friend a couple of blocks away. The lightning missed the tall trees surrounding the home and hit the roof instead.

Luckily they were not home, but the lightning ignited the roof of the home and quickly spread throughout the home. By the time the fire department arrived at the home, the home was fully engulfed in flames. Not much was left of the home. The picture above is the actual picture of what’s left of the home.

In talking to my father, he recalled how all homes where he grew up had lighting rods. In our area, there is no requirement for lightning rods to be installed in old or new homes. Well, our friends found out the hard way what happens when lightning strikes a home.

While in hindsight, the following items might have helped minimize the loss, including a home sprinkler system, a monitored fire alarm system and, perhaps, a lightning rod, there are a couple of things a homeowner can do to help prepare for a possible disaster and assist in the recovery.

The first thing that you should have available at all times is a copy of your insurance policies. If you have had your insurance policy for some time, make sure that your homeowner’s insurance policy contains the declaration page along with the policy and all endorsements. You might like to know that insurance carriers frequently update and change their insurance policies and will add endorsements to your policy. However, these endorsements may come to you after you have received the policy and it will be up to you to have the policy and all endorsements stored in one place.

Many insurance carriers will give you online access to your policy and forms, but if your policy is several years old, you may have to request that the insurance carrier mail or email to you the current version of your insurance policy along with its endorsements.

A helpful list would be for you to have an inventory of everything you own. You can create a list of all of your worldly possessions and make sure you have it in a safe place. But, you can also to around your home taking pictures of everything you own.

If you decide to use a camera, don’t forget to open up cabinets, closets, storage bins and boxes to take pictures of those items as well. At least if you’ve taken pictures of everything, you will have an easier time remembering all of the things you owned and can prove that you had four sets of china along with a one hundred pairs of shoes or a jean collection.

If you’ve taken those pictures or have an inventory, make sure that the information is kept in a safe place you can retrieve if there is a disaster. It won’t do you too much good to put that back up disk or drive in your basement if you end up with a flood there. You may wish to keep multiple copies of your files in different locations that you may be able to access readily in the future.

If you have this information, you can at least talk to your insurance adjuster about all of items you lost in your home and can show evidence that you had those items there.

When you deal with insurance companies, make sure you’re working with a reputable insurance carrier with a good reputation in dealing with their customers after a disaster. If you pick the cheapest carrier, you may pay less in premiums but your first disaster may be compounded by a second when they fight you for what you might be entitled.

Once you choose an insurance carrier, make sure you have adequate coverage for your home and possessions. If you think it would cost you $300,000 to rebuild your home from scratch, don’t buy $250,000 in coverage to save some money. Frequently, homeowner’s underestimate the amount it will cost to rebuild a home and if it costs more than the amount you have covered under your policy you may be out of luck.

Some insurance agents will try to convince their customers that the insurance company’s policy will cover them for up to 125% of the policy amount. However, if you suffer a total loss, you may need that 25% additional coverage for other unexpected costs. And, if you are a collector of special items, make sure your insurance carrier knows that you collect antiques or other items that may have a high value and may not be covered under some policies.

If you have covered your home for the amount that it would take to rebuild it, make sure you keep up that amount from time to time, if the amount has not gone up in years, you may want to reevaluate whether you should increase the amount of coverage for your home.

Once you have covered the home, make sure the things you own inside of it are covered as well. If you have a total loss, do you have enough coverage under the policy to cover you for the televisions, games, jewelry, clothing, bedding, furniture and other items that you own? Make sure you have enough of this kind of coverage and that your policy will cover your expenses while you have to live somewhere else for up to two years.

These steps won’t eliminate the tears shed from the loss, but may minimize some of the hard work that you will have to go through trying to reconstruct your life after a big loss.

Do you have a story about an insurance loss you’ve had and the problems you went through with your insurance carrier? If you did, please leave a comment about what you went through with your insurance company and how you managed and solved it.

In case you missed it, the National Kitchen and Bath Association released its 2011 Kitchen and Bath Study and predicted trends for this year’s renovations.

Some of our RJ-ers are involved in the remodeling process and I’d love to hear which trends they think will bring in business in 2011.

Here’s the list of what the NKBA thinks will be big in the coming months:

1. The Case for Space. If you recall, opening rooms was also one of the National Association of the Remodeling Industry’s predicted trends for 2011. It seems that today’s chefs don’t want to be stuck in a stodgy room. And for those who are more frugal, simply knocking down a wall may be enough: “Knocking down a few walls costs a lot less than adding square footage. If you’re a do-it-yourselfer, though, make sure you’re not destroying load-bearing walls.”

2. Tough Counter to Crack. Quartz is back in a big way. People are going for the hard mineral because it is the “perfect alternative to granite and marble for low maintenance and high durability” in both the kitchen and the bathroom. In fact, 85 percent of NKBA bathroom designers incorporate quartz into their designs.

3. Going Green. While it is important to be eco-friendly, this year people are quite literally going green, especially in bathrooms. The calming, earthier tone saw a rise in popularity late last year; at the beginning of 2010 only about 1 in 7 people requested green in their remodel, but by December 1 in 4 wanted the color.

6. Relax in Style. People are turning up the volume on in-home luxury; maybe because of the economy, people are finding ways to pamper themselves at home. From spa-like bathrooms to a rise in unchilled, wine cabinets being installed, homeowners are creating spaces in their homes to simply relax. For those on a budget, MSN Real Estate suggests “adding multiple shower heads to a shower typically costs just a few hundred dollars, making it one of the most economical ways to add a spa feel. Also, try to avoid moving fixtures, since that can add enormously to a project’s cost.”

8. Going Green…The Other Way. Some choose to paint to be green, but homeowners are also becoming – not surprisingly – more eco-aware in their choices. From bamboo flooring to installing LED lighting, remodeling is taking a turn for the sustainable. NKBA members even said that 89% of the kitchens they designed included some consideration for pull-out trash and recycling bins, and a distinct rise in both garbage disposals and trash compactors.

9. You’re so vain. Piggy-backing on the spa bathrooms, vanities are getting a redemption. Remodels are taking a turn from the super-industrial look with finished metal to vessel sinks and integrated sink tops, which have a warmer, more classic feel. The bathroom vanity is also seeing double-dual sinks are now a “given” in master baths.

10. Hit the (Hardwood) Floor. While carpeting may have never been the best choice for the kitchen or bathroom, this year it is being panned for the entire house. Hardwood and tile remain a staple, but bamboo flooring is also gaining popularity. Liz Pulliam Weston of MSN Real Estate adds, “high-end linoleum – which sounds like an oxymoron, but isn’t – is being used in more fashionable homes.”

What kitchen and bath trends would you like to see become popular?

Which trends do you wish would just go away already?

Fireplaces add warmth and value to an apartment, but they are also potentially dangerous when not taken care of. To keep your apartment safe, take a few precautions. You might have to bug your landlord to take care of some of these safety precautions, but it’s worth it to keep your place fire-safe.

1. Make sure your landlord has cleaned the fireplace. If you have a wood-burning fire, ask your landlord whether it’s been cleaned this winter. Experts recommend having a professional chimney and fireplace cleaning every year to prevent creosote build-up that can cause chimney fires.
2. Check your smoke detectors. If you’re not sure when the batteries to your smoke detectors were last changed, ask your landlord to replace them. If smoke began to build up in the fireplace, it’s crucial that all your fire alarms function properly.
3. Don’t leave the fire unattended. Never go to sleep with the fireplace still burning, and keep an eye on it while you’re in the apartment. Even with a screen, small paper holiday decorations, tinsel, and Christmas tree needles could get into the fireplace and spread the flames.
4. Keep fire extinguishers on hand. In the event that sparks leap onto furniture, decorations, or your Christmas tree, you’ll need an easily-accessible, functioning fire extinguisher. Your landlord should have provided your apartment with one, and you should double-check that it has been inspected recently.
5. Use only seasoned hardwood in your fireplace. Never burn cardboard, trash, or lighter fluid, and avoid wet logs that can accelerate creosote build-up. If you use artificial logs, only burn one at a time.

For more information on fireplace safety tips, check out the U.S. Fire Administration and Hearth, Patio, and Barbecue Association websites.

In their press release, the BBB says home heating costs this winter are expected to rise by four-percent for homes relying on natural gas and eight-percent for homes heated by propane or electricity according to the Energy Information Administration. That’s quite the hike! Luckily, homeowners can fend off some of the rising energy costs by winterizing their home.

“High heating costs are a problem each winter for cash-strapped consumers making it especially important to winterize their homes,” said Steve J. Bernas, president & CEO of the Better Business Bureau serving Chicago and Northern Illinois. “It makes good economic sense because a small up-front investment can pay dividends for months by increasing the energy efficiency of a house and reducing overall heating costs.”

The following is a BBB home winterizing checklist:

• Caulking and Weather Stripping. To prevent air leaks, homeowners should inspect the caulking around windows and doors and check for cracking and peeling. In addition, ensure that doors and windows shut tightly and no cold air is coming in due to worn down weather stripping.
• Ceiling fans. By reversing the direction of your ceiling fan so the blades turn clockwise, you push warm air down and force it around the room.
• Furnace. Furnaces older than 15 years might be due for a replacement. For newer furnaces, make sure the filter is clean and the thermostat is working properly.
• Heating ducts. Ducts should be cleaned once every two years. Homeowners should also consider adding insulation to any exposed ductwork in order to prevent losing heated air.
• Emergency kit. When a winter storm strikes, an emergency kit should have all essential materials in one handy place. An emergency kit should include flashlights, candles and matches, a first aid kit, bottled water, non-perishable food and a battery-powered radio. Create the same emergency kit for the car as well, including a couple blankets.
• Smoke alarm and carbon monoxide detectors. Test smoke alarms and carbon monoxide detectors and installing fresh batteries. Homeowners should consider replacing smoke alarms older than 10 years.
• Gutters and ridge vents. Gutters should have been cleaned to prevent any clogs that would cause rainwater to back up and freeze, making the gutters expand and crack. The ridge vents need to be cleaned as well in order to help prevent stagnate air.
• Windows. Window screens should be taken down and replaced with storm windows; they provide an extra layer of protection and keep the house warmer. Investing in a window insulator kit is an inexpensive option to keep out drafts as well.

For more BBB tips on home maintenance and saving money this winter, visit BBB online at www.bbb.org