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.
