Hiring an appraiser isn't always necessary

Q. My wife and I would like to know the value of our house and property. We think it would be important to have an estimate as to the property value if one of us died, for planning purposes. Should we hire an appraiser to place a value on it or use a local Realtor?

A. For financial planning at this time, you don't need the expense of an elaborate full appraisal. An experienced broker who is active in your area can furnish an oral estimate, a comparative market analysis or a simple one-page opinion of value.

Q. I thought the column with questions about burying a St. Joseph's statue in your yard was hysterical. Now that I'm selling my home, I have similar questions and it's not so funny. So, do you bury him head first? And what about the timing, right when you put the house on the market? Do you dig him back up when sold? I don't want to mess this up!

A. OK, here's what I've been told. For help with the sale of the property, the statue is to be buried upside-down facing the house, in the far right corner of the backyard. I suppose that could be like stage right, looking out toward the street, but I've always assumed it's the lot line on one's right looking in from the sidewalk.

That's about all I've ever heard, so I can't answer the rest of your questions. I will pass on what one reader wrote in: "Unless you have faith, you might as well bury a statue of Elvis Presley."

Q. We bought our home in 2014. This summer we plan to build a deck and finish off part of the basement. I understand home repairs are not tax deductible, but what about major improvements? Can we take the whole cost as a tax deduction for 2015 or would we be dividing it up over a period of years?

A. Neither. The money you spend on permanent improvements is added to your cost basis for the property. When you sell some day, it would reduce the amount of your profit, your capital gain. By then, of course, you'll probably qualify for the home sellers tax exclusion anyhow. As a married couple filing jointly, you could take up to $500,000 in profit free of capital gains tax.

If you never do sell, your heirs will receive the house with a stepped-up cost basis, value around the time of your death. So in the end, the price of those improvements isn't likely to have any effect on anyone's tax return.

Better just enjoy the view from your deck, and shut the door to the basement when your son's combo rehearses down there.

Q. Are there tax consequences if we transfer ownership of real estate (21 acres forested land) to our son now, or is a better plan to let him inherit the property?

A. The answer to your first question is that you'd have to file a gift tax return, but you might not owe any actual tax. As far as the federal government is concerned, the value of the land would be deducted from what you could leave tax-free when you died. Only two states impose a gift tax.

As soon as you ask that second question, though - is there a better plan, then as with almost all estate questions, the answer is a firm "it all depends."

How much is the land worth? What's your cost basis? How old is your son? How secure is his marriage? Do you have other children? How old are you? How big is your estate? How's your health? Above all - what are you trying to accomplish?

Before you do anything, all of that - and more - should be discussed with a lawyer who specializes in estate planning or elder law.

Q. Is it legal to keep a security deposit from a rental unit because of a default in the terms of the contract? More specifically, our tenant brought his dog on the property to reside with him when we had specific terms and conditions pertaining to that.

A. You can evict the tenant if he broke the provisions of his lease, but the security deposit is a separate matter. It's intended to pay for extra clean up expenses, possibly some related to the dog.

• Edith Lank will respond to questions sent to her at 240 Hemingway Drive, Rochester, N.Y. 14620 (include a stamped return envelope), or readers may email her through askedith.com.

© 2015, Creators Syndicate Inc.