| 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. |
|
| 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. |
|