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Are property taxes deductible?
ANSWER: Property taxes
on all real estate, including those levied by state and
local governments and school districts, are fully
deductible against current income taxes.
Are taxes on second homes deductible?
ANSWER: Mortgage
interest and property taxes are deductible on a second
home if you itemize. Check with your accountant or tax
adviser for specifics.
Do all loans require impound accounts?
ANSWER: If you are
taking out a 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.
How do property taxes work?
ANSWER: 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.
How is a home's value determined?
ANSWER: 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 or find comparable sales information
available on various real estate Internet sites.
What is an impound account?
ANSWER: 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.
Where can I learn more about appealing my property
taxes?
ANSWER: 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.
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