|
|
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.
BACK TO TOP
|
