10 Ways To Cut Your Property Taxes

10 Ways To Cut Your Property Taxes

10 ways to​ cut your property taxes
Property taxes are decided collectively by school boards,​ town boards,​ legislators,​ and councils .​
The tax rate is​ set by collating the​ amount of​ funds an​ area needs .​
This is​ then divided that by the​ total taxable assessed value of​ the​ area .​
The tax an​ individual pays is​ computed by multiplying the​ tax rate by the​ assessed value of​ your property and then deducting any applicable exceptions .​
Property taxes are at​ an​ all time high .​
Studies indicate that they have increased more than 35% in​ five years.
Property is​ assessed by determining property costs in​ any given area .​
Property is​ valued by studying: the​ current sale price of​ properties in​ the​ area,​ costs to​ be incurred to​ replace the​ property,​ potential realization of​ property if​ it​ is​ rented,​ sold,​ or​ gifted,​ and the​ historical value of​ a​ property.
There are a​ few ways in​ which you​ could save on​ taxes:
1. Check if​ the​ state you​ reside in​ is​ offering any rebates .​
For example,​ a​ money back rebate,​ energy rebate,​ capping of​ taxes,​ or​ home owners rebate where under certain conditions you​ may be eligible to​ claim a​ rebate .​
2. Ensure that the​ property is​ assessed right .​
This will ensure that you​ do not have to​ pay excess taxes .​
Assert your right to​ check you​ assessment report ensure that there are no miscalculations,​ mistakes,​ or​ assumptions .​
If in​ any doubt,​ do put in​ an​ appeal .​
According to​ statistics almost 50% of​ the​ cases win some relief .​
3. Check all exemptions allowed according to​ the​ law .​
4. Buy property jointly with a​ partner or​ family member .​
This way both owners become eligible for tax rebates.
5. Check if​ your assessment is​ in​ according to​ other properties in​ your neighborhood .​
Check with the​ assessment office or​ with your neighbors themselves .​
It helps to​ know applicable laws .​
Use the​ help of​ a​ real estate professional to​ put together a​ file of​ properties similar to​ yours that have a​ lower assessment .​
Or,​ use the​ bank’s appraisal to​ support your case .​
Be sure that the​ case you​ gather together is​ water tight.
6. Use a​ property consultant to​ help you​ save taxes .​
Some charge a​ flat fee while others just a​ percentage of​ what you​ save .​
a​ professional will check how assessment is​ done and also if​ there are any loop holes you​ can use.
7. There is​ strength in​ numbers .​
Get together with other owners who are also checking or​ fighting assessments .​
Check on​ the​ National Taxpayers Union Web site www.ntu.org for your rights.
8. Ask you​ home loan provider whether you​ are eligible for refund of​ property taxes paid .​
Some agreements have a​ provision for this .​
Many mortgages have automatic escrow of​ taxes .​

9. Even before you​ buy a​ home find out what the​ property taxes are in​ the​ area and what have been the​ increases in​ tax rates .​
10. Be sure to​ read through assessment and tax manuals published by your local authorities .​
These will give a​ clear idea of​ what are the​ parameters used and what you​ must do to​ reduce or​ pay the​ correct property taxes.
In order to​ be money smart you​ need to​ get the​ help of​ an​ efficient and dedicated accountant,​ plan your tax liabilities well,​ known thoroughly all aspects of​ Property Tax .​
If you​ are prudent,​ you​ can benefit by using ways and means to​ cut your tax burden and liabilities.

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