We’re seeing the market value of homes rising all across the country. That means we can also expect higher property tax values on the horizon. But if you understand the implications now, you might be in a better position to keep your liability low.
Property Taxes: Know the Facts
Compared to home values, property taxes are slower to fluctuate. Yet homeowners who are looking to stay put and don’t want to move can actually experience the tax impacts much sooner. And today, there’s only a $10,000 tax deduction on federal tax returns—for all of your taxes combined!
The total sum of your state income tax, property tax, and sales tax all play into that $10,000 number. Naturally, it’s a good idea for homeowners to consider some of the ways to keep their property tax reasonable.
How to Navigate Your Property Assessment
When you’re worried about whether your property tax is going to increase, you still have some options. Typically this starts with contacting an assessor for a property revaluation. Just keep these tips in mind.
1. Do Your Own Research
The approval process in your area will come with some very specific steps. A careful reading of your property tax statement can usually give you some insights or even a complete outline for the actual approval process and how to navigate things on your end.
Before you reach out to an assessor, though, consider talking with some of your neighbors first. How does your property compare to other homes nearby? Real estate professionals could also provide you with some information on this. They might even be open to conducting a market review for you. Assuming they don’t overvalue your home, this documentation will put you in a better position to make a case with the assessor.
Also, be sure to know what the deadlines are going to be. If you’ve already missed one of those dates, it’s best to hold off. You don’t want to waste your time for something that won’t be able to happen this year.
2. Check the Property Classification
Was your property ever listed under a different classification? For example, do you live in a condo, but the property used to be an apartment? These errors will likely mean that the property’s current appraised value is off-base. You’ll want to educate the appraiser on any of these quirky details or other errors you’ve identified before they arrive.
3. Lead with Reason
Organize your research before starting work with the assessor. You’ll need to be able to defend your opinion with a formal review, and it also helps to have a specific number on your mind for your current home value. Approach these conversations with logic and stay professional. Hopefully they’ll respond in kind and help you get the results you want!
Cover All the Bases for Tax Season
Even if you aren’t able to reduce your property tax burden right now, there might still be other ways to lower your tax bill. So let’s start the tax planning process sooner than later! Our team is passionate about helping clients stay responsible with their tax filing—without overpaying.
To schedule your consultation, please don’t hesitate to call our office at (317) 588-3131. We’d be happy to get you on the calendar.