How do property taxes work?
Property taxes are what most homeowners in the United States pay for the privilege of owning a piece of real estate. In our area, Property Tax amounts to approximately 2.5 percent of the property's current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.
Are property taxes deductible?
According to the new tax laws, some residential property taxes are no longer deductible. Check with the IRS or your accountant to see for sure which propertay taxes are deductible.
How is a home's value determined?
You have several ways to determine the value of a home. An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $350 for a $250,000 house.
can I learn more about appealing my property taxes?
Contact your local
tax assessor's office to see what procedures to follow to appeal your property
tax assessment. You may be able to appeal your assessment informally. Mostly
likely, however, you will have to go through a formal tax-appeal processes,
which begin with an appeal filed with the appropriate assessment appeals
board. Call us for help. We can provide you with neighborhood comparisons and tricks of the trade.
What is an
impound or escrow account?
An impound or escrow account is a trust account established by a lender to hold money to pay for real estate taxes, and mortgage and homeowners
insurance premiums as they are received each month.
Are taxes on second homes deductible?
Mortgage interest and some property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics. If you use your second home as a VRBO or temporary rental, more of your income tax and property tax will become expenses. Again, talk with your accountant.