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Easy, Grow-Your- Own Veggies Cool the Calories in Summer Treats Tax Tips for Summer Rentals High ROI Improvements for Home Sellers Best Summer Road Trips in America May–June 2018

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Page 1: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

Easy, Grow-Your-Own Veggies

Cool the Calories in Summer Treats

Tax Tips for Summer Rentals

High ROI Improvements for Home Sellers

Best Summer Road Trips in America

May–June 2018

Page 2: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

ay and June mark a turn from springtime to the lazy, hazy days of summer. There are many firsts each summer—each a potential memory in the making. These season openers, from the first dip in an outdoor pool to the inaugural backyard barbeque, are the traditions that make summer one of the most anticipated times of the year.

To help you celebrate this summer in style, we've included many ideas in this issue to create a whole new list of season openers:

• Easily grow your own veggies at home with our tips.

• Learn the tax implications of renting out your property this summer.• Check out a new place to go on a summer road trip.• Learn if the calories in your favorite frozen treat are worth it!

There is a lot more in this issue, too. So pull up a patio chair on the first warm day of the season and relax while you enjoy it.

Wishing you a great summer season!

Sincerely,Your Trusted Advisors

Summer Season Openers

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Features4 • Live Your Legacy A legacy represents the lasting impact you want to have in the world. We look at how to create one that lasts.

6 • Tax Tips for Summer Rentals There are some special tax implications of renting out your property. Check them out in this issue, before you sign any rental agreements.

8 • Best Summer Road Trips in America If you are hankering to hit the open road this summer season, you may want to add one or two of these tours to your itinerary.

10 • High ROI Improvements for Home Sellers Take note of these key home improvements which may increase the value of your home.

Departments2 • From the Firm | Summer Season Openers. To help you celebrate this summer in style, we’ve included many ideas to show you how to create a whole new list of “season openers.”

12 • Life & Living | Easy, Grow-Your-Own Veggies. This list of veggies will make it super simple to grow a bounty of goodness right in your own backyard.

14 • Mind Flex | Cool the Calories in Summer Treats. Ice cream, smoothies and frosty beverages…they all taste so good on a hot summer’s day. Here’s how they stack up from a weight watcher’s perspective.

In The Loop is published by Rootworks LLC, 1516 S. Walnut St., Bloomington, IN 47401 (rootworks.com) and distributed as a courtesy by professional services firms nationwide. This publication is intended to provide general information only and is not to be construed as providing financial, legal, or other professional advice or services. The information and points of view presented may not be appropriate for your specific financial position or circumstances. Contact a financial or legal professional before making any decisions or plans regarding your financial management.

May–June 2018

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There comes a time when many of us start thinking about what our legacy will be when we are gone—or even while we are still living. Your legacy represents your relationships, accomplishments, values and deepest wishes to help you to make an even greater impact in the world. We look at how to create one that lasts.

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Creating a lasting legacy takes focus and effort, especially in these two areas: 1) How your legacy will be manifested, and 2) How your legacy will be funded. Let’s take a closer look at both. DEVELOPING YOUR LEGACY: WHERE TO STARTThinking about the legacy you will leave can be difficult because it forces you to think about your own mortality. Using resources such as those pro-vided by The Funeral and Memorial Information Council (FAMIC) can help you think through how to structure your legacy and how to have conversa-tions about it with your loved ones. On FAMIC’s website, talkofalifetime.org, the organization offers a checklist (you can download it for free) with these and other key questions to consider when thinking about the legacy you want to leave:• How do you want to be remembered?• Are you a lifelong volunteer?• Did you serve in the armed forces?• Are there hobbies that helped define you as a person?• Was there a defining moment in your life that you believe formed who you are?• How would you like your loved ones to celebrate your life when you die?• Do you have a favorite charity you would like people to donate to in your honor?• What would your theme song be?• Who had the biggest influence in your life?• Is there a way you’d like to honor that person? Asking yourself these questions and discussing them with those closest to you can help you determine what your legacy will be and how to manifest it by taking action to support it.

The second part of the equation often comes down to money. Most of the time, you will need funds to endow your legacy or to initiate the activities that will support it.

According to financial coach Chris Hogan, only 56 percent of American retirees plan to leave an inheritance for their children because they don’t think they will have enough money after retirement. Hogan proposes that “legacies are never accidental,” and he encourages people to start thinking about their legacy early and use the following “three L’s of leaving a legacy” to prepare:

LOVING Showing love to your family, your community andcharitable causes through careful saving.

LIFTING Providing a financial lift to charitable causes and others through smart investments.

LEAVING Creating lasting memories of your hard work and focus. As Hogan says on his website (chrishogan360.com), “Your money habits pass the baton of financial wellness and responsibility to the next generation.”

Time goes by quickly—so don’t wait to create a legacy that will live on through future generations. Spend some time thinking about what you want your lasting legacy to be, and then take action to bring it to reality.

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TAX TIPS for

Summer Rentals

Page 7: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

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The IRS definition of a vacation property includes not only houses, cottages and condomini-ums, but also mobile homes, recreational vehicles and boats.

You may be obligated to pay state and local tax-es on the rental of your vacation property as well as federal taxes.

The tax liabilities associated with a vacation home and the deductions you can claim against the property primarily depend on the time you spend there, or, as the IRS calls it, your “personal use” of a second home. The IRS definition of personal use covers time that you or any member of your family, including your spouse, children, siblings, parents, grandparents and grandchildren spend at your vacation property.

Personal use also includes renting your vacation home to anyone for less than fair market value, trading your place to stay somewhere else, and donating your property for charitable use.

The IRS rules state that if you spend fewer than 14 days or 10 percent of your time each year at your vacation home, you can write off expenses associated with owning a rental property. These deductions are allowed in proportion to the amount of time your property is rented.

The cost of advertising for tenants or other expenses directly related to renting out your property are 100 percent deductible.

If you spend more than 15 days a year at your vacation home and also rent it periodically, your tax obligations are based on how much time you, your family or your renters spend there. If the personal time you spend at your vacation property is more than the 14 days or 10 percent of the year mentioned in point number five, the IRS states that you “must divide your total expenses between rental use and your personal use based on the number of days used for each purpose.”

If you rent out your vacation home for 14 days or less, rental income is tax-free. For longer periods, rental income must be claimed and eligible expenses should be deducted based on the percentage of rental use.

There are many benefits to having a vacation property, and renting one can provide extra income while reducing your tax bill. However, if you do own a second home, a boat or other vacation property, you should always keep track of rental income and track the days it is occupied for personal use versus rental use. This will make it easier to tally your taxes at the end of the year. If you have any questions about this information, please contact our firm.

If you have a second home, you may be tempted to rent it out this summer to make a little extra cash. You should be aware, however, that there are some special tax implications. So be sure to check them out below before you sign any rental agreements.

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Road trips are an American summer tradition—and everyone has a favorite route. The following are some of the most iconic highway trips in the country, according to Jamie Jensen, author of Road Trip USA. So if you have a hankering to hit the open road this summer, you may want to add a few of these tours to your itinerary.

Page 9: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

Don’t Miss These Tax DeadlinesKeep these dates handy to avoid paying penalties

PARTNERSHIP/S CORP TAX DEADLINESMarch 15, 2018Partnership/S Corp Filing DeadlineSeptember 17, 2018Extension Deadline

C CORP TAX DEADLINESApril 17, 2018C Corp Filing DeadlineOctober 15, 2018Extension Deadline

ESTIMATED QUARTERLY TAX PAYMENT DEADLINES

1st Quarter 2018April 17, 20182nd Quarter 2018June 15, 20183rd Quarter 2018September 17, 2018 4th Quarter 2018January 15, 2019

INDIVIDUAL TAX DEADLINES April 17, 2018Individual Filing DeadlineOctober 15, 2018Extension Deadline

IRA CONTRIBUTION DEADLINEApril 17, 2018

Please visit www.irs.gov for additional updates throughout the year.

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Columbia River Scenic Highway, Oregon This near century-old route was built to show off some amazing scenery. This 75-mile highway starts at The Dalles and continues to Troutdale in Oregon. It begins east of Portland with breathtaking views of the Columbia Gorge. En route, you will see waterfalls and mountains.

Hill Country Hideaways, Texas This route is in the central region of Texas and features quintes-sential Lone Star scenery, such as deep canyons, swift rivers and sagebrush plains. According to Jensen, the roads are “wonderfully” winding, two-lane highways. He recommends driving a loop of state highways 335, 336 and 337.

Pacific Coast Highway, San Luis Obispo to Monterey, California California’s Route 1 runs the length of the state. Running through the middle section of the state, it features the seaside cliffs of Big Sur, the wine country of Paso Robles, and the artisan center of Carmel. Jensen recommends tackling this trip south to north for the best views.

Overseas Highway, Miami to Key West, Florida Originally developed for the Florida East Coast Railway, this 120-mile route was obliterated by a hurricane in 1935 and later

reconstructed into a highway. One of the many highlights is that you can swim with dolphins at the Theater of the Sea in Islamorada—an iconic roadside attraction.

Black River Scenic Byway, Michigan Michigan’s Upper Peninsula is an often-forgotten trail that provides road trippers with beautiful forested lookouts, waterfalls and scenic views of Lake Superior. State Highway 513 is designated as a scenic byway, but there are “off-road” adventures to be had for those who love to get deep into the wilderness. Just don’t forget your GPS!

The Loneliest Road, Nevada Despite its name, travelers on this highway have plenty of company in the form of magical natural views. Officially known as U.S. Highway 50, this road passes through long stretches of uninhabited regions. However, there are many points of interest, including the Pony Express route, historical mining camps and tree-covered mountain ranges. Don’t worry…there are plenty of pit stops for food and restroom breaks along the way, too.

These are just a handful of the best highways for U.S. road trips. Let them put the wheels in motion for you to research and find the perfect road for a memorable summer adventure. Source: USAToday.com

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High ROI Improvements for Home Sellers

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The following list includes projects which may increase your home’s appeal and value:

Interior and exterior painting Refreshing the paint on the interior and exterior of your home provides a quick payoff for a relatively small investment. Wondering what color to use? Real estate industry experts suggest pale yellow because homes with this color palette tend to sell faster and for more money.

Add a deck to up your home’s value A deck adds additional space for backyard living and outdoor cooking. Decks are popular features that are on the “must have” list for many homebuyers. According to recent market data, homeowners can expect to recoup 85 percent of their costs for building a deck.

Kick your kitchen up a notch One of the highest ROI home improvements is a kitchen remodel. Experts recommend doing high-quality upgrades including name brand fixtures, stainless steel appliances and high-end counters. However, they also caution that you should keep the cost of your upgrades on par with the overall price point of your home. Therefore, if you have a small house in a low-cost neighborhood, don’t go all out with a fancy kitchen makeover. You would be better off updating worn counter tops

and anything that is broken or extremely dated (like a linoleum floor or outdated 1980s-era cabinets).

Go bigger in the bathroom Similar to kitchen updates, bathroom upgrades like new countertops and fixtures can provide solid returns—up to 78 percent of the original cost according to some realtors. This is a space where you want to avoid upgrades that are too fancy or unique because your taste may not be the same as your buyers. Keep any bathroom changes simple and classic.

Liven up your landscaping The first impression of your home starts the moment a prospective buyer pulls up. Neat, tasteful landscaping can help to impress home-buying prospects and increase the price they are willing to pay. Planting perennials, removing dead veg-etation, trimming hedges and even paying for a professional landscaper to tidy things up will be worth your while when it comes to negotiating a home sale. Investing in these and other high-ROI home im-provements now can help you attract more poten-tial buyers and maximize your selling price. Grab a paintbrush and pruning shears or plan a remod-eling project to start increasing the market value of your home! Source: RealSimple.com

If you’re going to sell your home this summer, taking some time to make improve-ments may help get you the best possible sale price. Consider making some of these strategic home improvement investments.

Page 12: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

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Easy, Grow-Your-Own Veggies

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Carrots are quick-growing and can be planted in spring or late summer in cooler climates. You will need a garden plot with deep, loose soil. Carrot seeds produce many small plants, and you will need to thin them out when the tops are about two inches tall. Radishes can be grown in containers and garden beds in early spring. You can even plant them with your carrots. It takes about three weeks before they are ready to eat. Keep in mind that early spring radishes taste milder than those that grow later in the summer.

Spinach grows easily but cannot tolerate heat. So it is best to plant it in the spring and harvest it before the summer heat or plant it in late summer for a fall crop. Tomatoes should be planted after frost risk. It’s easiest to grow them from starter plants in a sunny, warm spot. Stake plants to stabilize them as they grow. You may also want to try a cherry tomato plant for some variety.

Cucumbers should be planted when frost risk has passed. These veggies need a lot of space to sprawl. You can also use a trellis to train them

upward to save space in your garden. You can pick small varieties for pickling. Be sure to pick cucum-bers regularly to keep plants producing. Peppers grow best from small starter plants in moist soil. They should also be staked to help them grow upright. You can pick them at any stage of their growth to meet your size and flavor preferences.

Lettuce is another easy win for backyard gardening. No matter what kind of lettuce is your favorite, you can grow it from seeds or young plants. Keep the plants in afternoon shade and water them well. Zucchini plants can thrive from seeds or starter plants in late spring. Like cucumbers, zucchini plants will sprawl, so keep this in mind when plan-ning your garden. Try to harvest frequently while the zucchini are small with shiny skin. Make the most of this summer season by choosing some of the veggies above and growing them in your yard or in containers on a balcony or porch. You’ll get more of the veggies you know you should be eating and the satisfaction of growing them on your own! Source: diynatural.com

Most of us could definitely stand to eat more veggies on a regular basis. There is no better time of year than the early summer months to make a plan and prepare to grow some in your own backyard. Following our list of easy, grow-your-own veggies will set you up for getting more vegetables into your diet this summer.

Page 14: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

Cool the Calories in Summer Treats

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Page 15: Summer Season Openers - Karla Dennis & Associates · donating your property for charitable use. The IRS rules state that if you spend fewer than 14 days or 10 percent of your time

Iced coffee by itself is not high in calories. However, most of us don’t stop at plain coffee—adding cream, sugar, flavoring, whipped cream and the like. To trim calories, opt for low-fat milk, skip the whipped cream and watch your portion size. You can also ask for sugar-free flavors, which will help you avoid excess empty calories.

Smoothies are a wonderful summer treat, especially when temperatures soar, but they can pack 500 calories or more depending on the size and ingredients. To keep things on the light side, choose smoothies made with only fruit, ice and non-fat yogurt, otherwise you may as well just order a milkshake.

Ice cream alternatives such as sorbets and sher-bets can help you avoid colossal calorie counts at the ice cream stand. Choose the smallest size cone or dish and take the time to savor it. While there is nothing wrong with the occasional “real deal” ice cream cone, too much, too often over the course of the summer is likely to be reflected in your waistline.

Sweet tea, lemonade and other summer sips. Any non-diet drink (aside from unsweetened iced tea) is likely to be loaded with calorie-adding sugar. If you can’t stand the taste or thought of a diet version, at least limit yourself to one small glass and choose water for your other beverages. Frozen yogurt is trendy, but unless you stick to a small amount of plain low-fat yogurt, the calories really add up. Avoid toppings like candy, syrups and cream, which will make a seemingly low-calorie yogurt treat into the equivalent of an ice cream sundae. Choose to add fruit instead. Summer treats are some of the best ways to engage all of your senses during the lazy, hazy days ahead. Go ahead and indulge, using the tips above to cool the potential calorie overload.

Enjoying the warm sun with a cool treat in hand—is there anything better than this simple summer pleasure? For many of us, a frosty beverage or sweet treat is a favorite way to refresh ourselves when temperatures heat up. However, many of these summer snacks are packed with calories. Here are some quick tips to help you keep the flavor without overdoing the dietary damage.

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