Buying Your Home - Property Taxes
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, on average 1.5 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?
Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes. Check with your accountant or tax adviser for specifics.
Are Taxes On Second Homes Deductible?
Mortgage interest and
property taxes are deductible on a second home if you itemize. Check with your
accountant or tax adviser for specifics.
Where 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 will have to go through a formal tax-appeal processes
which begin with an appeal filed with the appropriate assessment appeals
board. The Real Estate Team can help you with this by preparing a Comparative Market Analysis (CMA).
What Is An Impound Account?
An impound account is a trust account established by the
lender to hold money to pay for real estate taxes, mortgage and homeowner's
insurance premiums as they are received each month.
Do All Loans Require Impound Accounts?
If you are taking out an FHA or VA loan, the lender can require an impound account to pay real estate taxes and hazard insurance premiums, as with a standard loan. Most conventional loans do not require an impound account.