| 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. |
|