Disputing Your Property Tax Assessment Can Save You Money

August 10, 2023 by

Disputing Your Property Tax Assessment Can Save You MoneyProperty taxes can be a substantial financial burden for homeowners and property owners. Each year, local governments assess the value of properties to determine the amount of property tax owed. However, these assessments are not always accurate and can result in higher tax bills than necessary. Disputing your property tax assessment is a proactive way to potentially save money and ensure you’re paying a fair and equitable amount.

Reasons for Flawed Assessments:

Property tax assessments are not immune to errors and discrepancies. Several reasons can lead to an inaccurate evaluation of your property:

  1. Market Value Misjudgment: Assessors may rely on outdated or incorrect data, leading to the misjudgment of your property’s market value.
  2. Assessment Methodology: The methodology used to calculate property values might not consider all relevant factors, such as recent improvements or neighborhood changes.
  3. Comparable Properties: Assessors may use inappropriate comparables that lead to an inflated assessment that does not accurately reflect your property’s true value.
  4. Data Entry Errors: Mistakes can occur during the data entry process, resulting in incorrect information being used to determine your property’s value.

Steps to Dispute Your Property Tax Assessment:

If you believe your property tax assessment is flawed, follow these steps to initiate the dispute process:

  1. Review Your Assessment: Obtain a copy of your property tax assessment and thoroughly review it for any inaccuracies or discrepancies.
  2. Collect Evidence: Gather evidence to support your claim, such as recent property appraisals, photographs, or documentation of any property-related issues.
  3. Contact the Assessor’s Office: Reach out to the local assessor’s office to inquire about their specific procedures for filing a property tax appeal.
  4. File an Appeal: Submit a formal appeal with all the supporting evidence to the relevant authorities within the designated timeframe.
  5. Attend the Hearing: If a hearing is scheduled, be prepared to present your case and provide evidence to support your claim.
  6. Consider Mediation: Some jurisdictions offer mediation as an option to resolve assessment disputes. Mediation can be a less adversarial approach to reach an agreement.
  7. Consult with Professionals: If necessary, seek advice from real estate professionals, appraisers, or tax consultants to strengthen your case.

Disputing your property tax assessment is a proactive way to ensure you’re paying a fair amount of property tax and not overpaying due to inaccuracies or flawed evaluations. By taking the time to review your assessment, gather evidence, and follow the appropriate procedures, you can potentially save a considerable amount of money and promote fairness within the local tax system. 

Filed Under: Mortgage Tagged With: , ,

It Is Tax Time Again Learn About Tax Deductions and How to Write off Your Home Mortgage Interest

July 2, 2020 by

It Is Tax Time Again Learn About Tax Deductions and How to Write off Your Home Mortgage InterestMuch to the frustration of taxpayers all over the country, the tax-filing season begins in January and runs through April 15 of each year. The year 2020 brought us many changes, including an extension on filing taxes. Taxes this year are due on July 15th. Are you ready?

As the current tax season approaches, it presents an opportunity to help tax-payers clarify their responsibilities and remind them of certain important tax deductions that may be available.

Filing Responsibilities

Every person in the United States is required to file their tax returns by July 15 so long as they have some form of qualifying income. Based on filing status, income and available deductions, tax-payers must file a 1040EZ, 1040A or 1040 (long-form for itemized deductions).

Qualifying income is generally defined as, but not limited to wages, commissions, miscellaneous income (rental, interest), investment income and alimony. These forms of income are reported on a periodic basis to the IRS and State governments by employers, banks, contract employers and/or other responsible parties.

The most common tax receipts that must be sent to tax-payers by January 31 are W-2s and 1099-Misc forms.

Calculating Taxes

While the IRS requires individuals to report all forms of income, they also allow certain living costs to be used as deductions to offset income in order to arrive at a “taxable income” number on which tax liabilities are calculated.

If a tax-payer’s deductions fail to exceed the combined statutory standard deduction,, they will want to file the 1040EZ or 1040A. If itemized deductions exceed this number, the 1040 becomes preferable.

Mortgage Interest Deduction

For a majority of tax-payers, the largest tax deduction available is usually mortgage interest paid on secured debt where the primary residence and in some cases second homes or rental property serve as collateral. In most of these cases, all interest paid during the year is deductible.

If the mortgages are large enough, the total interest paid will typically push the tax-payer into position to itemize deductions. It is important for tax-payers to read the rules related to mortgage interest deductions as they tend to be somewhat complicated.

Other Important Deductions to Consider

Once a tax-payer qualifies to itemize deductions, many other living expenses become deductible. Other prominent deductions include property taxes, charitable contributions, childcare costs, qualified moving expenses, certain work related expenses and certain medical expenses.

Prior to using any deduction, it is incumbent on the tax-payer to review deduction guidelines in order to determine applicability.

Filed Under: Home Mortgage Tips Tagged With: , ,

Tax Time is Upon Us: Learn About Tax Deductions and How to Write off Your Home Mortgage Interest

February 4, 2015 by

Tax Time is Upon Us: Learn About Tax Deductions and How to Write off Your Home Mortgage InterestMuch to the chagrin of taxpayers all over the country, the tax-filing season begins in January and runs through April 15 of each year.

As the current tax season approaches, it presents an opportunity to help tax-payers clarify their responsibilities and remind them of certain important tax deductions that may be available.

Filing Responsibilities

Every person in the United States is required to file their tax returns by April 15 so long as they have some form of qualifying income. Based on filing status, income and available deductions, tax-payers must file a 1040EZ, 1040A or 1040 (long-form for itemized deductions).

Qualifying income is generally defined as, but not limited to wages, commissions, miscellaneous income (rental, interest), investment income and alimony. These forms of income are reported on a periodic basis to the IRS and State governments by employers, banks, contract employers and/or other responsible parties.

The most common tax receipts that must be sent to tax-payers by January 31 are W-2s and 1099-Misc forms.

Calculating Taxes

While the IRS requires individuals to report all forms of income, they also allow certain living costs to be used as deductions to offset income in order to arrive at a “taxable income” number on which tax liabilities are calculated.

If a tax-payer’s deductions fail to exceed the combined statutory standard deduction (2014: $6,200 if filing single, $12,400 if filing as married couple, $9,100 if filing Head of Household) and personal exemption of $3,950 per dependent, they will want to file the 1040EZ or 1040A. If itemized deductions exceed this number, the 1040 becomes preferable.

Mortgage Interest Deduction

For a majority of tax-payers, the largest tax deduction available is usually mortgage interest paid on secured debt where the primary residence and in some cases second homes or rental property serve as collateral. In most of these cases, all interest paid during the year is deductible.

If the mortgages are large enough, the total interest paid will typically push the tax-payer into position to itemize deductions. It is important for tax-payers to read the rules related to mortgage interest deductions as they tend to be somewhat complicated.

Other Important Deductions to Consider

Once a tax-payer qualifies to itemize deductions, many other living expenses become deductible. Other prominent deductions include property taxes, charitable contributions, childcare costs, qualified moving expenses, certain work related expenses and certain medical expenses.

Prior to using any deduction, it is incumbent on the tax-payer to review deduction guidelines in order to determine applicability.

Filed Under: Home Mortgage Tips Tagged With: , ,

First Time Buyers: Understanding How Property Taxes Work and What You Can Expect to Pay

December 11, 2014 by

First Time Buyers: Understanding How Property Taxes Work and What You Can Expect to PayAre you about to buy a house or condo for the first time? Congratulations!

Owning your own piece of real estate is a liberating experience and one that will provide you with the foundation to build your personal wealth and equity. Once you own your own home you’ll be responsible for a variety of new costs, including property taxes which are assessed by your local government to pay for municipal services.

In this blog post we’ll share how property taxes work and what you can expect to pay for them when you buy your new home.

It All Begins With a Local Property Tax Assessment

As mentioned above, local governments assess property taxes as a means for paying for police officers, fire fighting services, road maintenance and the other various costs that come with running a town or city. Whether you’re buying a house, a townhouse or a condo, the property that your home sits on is inside of an area known as an “assessment area”.

When the local government determines what your local tax levy or tax rate will be, they will assess your home based on the real estate market value of similar homes in the area. You can multiply your tax rate by the assessed value of your home to determine how much you’ll owe in property tax.

Property Taxes As Part of Your Closing Costs

When you close on your new home you’ll have to pay property taxes, and your real estate agent will help you to understand how much these taxes will be and how they will be paid. In most cities and counties you’ll pay a pro-rated amount of property tax that covers the time span from the date you purchase the home until the end of the year, after which time you’ll be paying your full assessed rate.

Don’t Forget Your Overall Tax Picture

Finally, don’t forget that property taxes can be factored in to the rest of your overall tax picture. Check with your accountant or another financial professional to determine whether or not you can write your property taxes off against your income tax to save some additional money. There are numerous tax benefits to owning a home, so it’s best to start using them from day one.

As with all other taxes, property taxes are a fact of life that every homeowner faces. When you’re ready to buy a new home and to learn more about how property taxes will affect your purchase, contact your mortgage professional for expert advice.

Filed Under: Home Buyer Tips Tagged With: , ,