| Q: |
How do property taxes work? |
| A: |
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. |
|
| Q: |
Are property taxes deductible? |
| A: |
Property taxes on all
real estate, including those levied by state and local
governments and school districts, are fully deductible
against current income taxes. |
|
| Q: |
Where can I learn more about appealing
my property taxes? |
| A: |
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. |
|
| Q: |
How is a home's value determined? |
| A: |
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 $300 for a $250,000 house.
A comparative market analysis is an informal estimate
of market value performed by a real estate agent
based on similar sales and property attributes.
Most agents offer free analyses in the hopes of
winning your business.
You also can get a comparable sales report for
a fee from private companies that specialize in
real estate data. You also can find comparable sales
information available on various real estate Internet
sites.
|
|
| Q: |
Are taxes on second homes deductible? |
| A: |
Interest and property
taxes are deductible on a second home if you itemize.
Check with your accountant or tax adviser for specifics. |
|
| Q: |
What is an impound account? |
| A: |
An impound account
is a trust account established by the lender to hold
money to pay for real estate taxes, and mortgage and
homeowners insurance premiums as they are received
each month. |
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