Mistakes People Make With Property Taxes

There’s a lot of things to keep in mind when you are buying a new home. One of them is property taxes, which are just one of many that you need to keep track of. It can seem very overwhelming. While you could also go to a search engine and type “learn property tax loan calculation in California,” you should also make sure to avoid these types of mistakes.

You Deduct The Wrong Year

It’s important to know whether the taxing authority is working based on the current year or the previous one. You need to itemize the deduction and make sure that you are claiming the right amount.

You Confuse Escrow and Actual Taxes

When it comes to buying a home, your lender may use escrow for your funds. So you use that for property taxes, right? That’s not the case. There may be some discrepancies in the amount that you are paying and what the lender is taking. The best solution is to look at the Form 1098 that you get from the lender and deduct what is on there. That way, you won’t have the taxing authorities contacting you for more money.

You Don’t Know How To Dispute Errors on Property Tax Assessments

You get your tax documents and you see a property tax assessment and it’s just … wrong. But how do you go ahead and challenge it? Yes, you can do that. The things to look for include whether they applied the correct exemptions, the assessed value of your place, or if they wound up taxing you at an incorrect rate. You can enlist the help of a lawyer or tax professional who specializes in this to help you. Ultimately, it’s about standing up for yourself and knowing the true value of your place. What you need to keep in mind, though, is that you should pay some of that disputed amount while you are appealing. That way, you won’t have the IRS breathing down your neck as much.

Online Resources

LIke other types of taxes, property taxes can be very aggravating when trying to figure them out. Talk to as many knowledgeable people as you can. There are also a lot of resources out there, including online sites and even forums or message boards. When you do that, though, make sure that people are talking about the most up-to-date information out there. Tax codes can change from year to year, so you want to make sure that you are not relying on outdated advice. That’s another surefire way to make sure that you wind up paying more money than you originally intended to. When it comes to property taxes, this post is talking about residential filings. There are regulations for commercial property taxes and also for businesses. Those are in a whole different category where many words could be written about them.

Seek Professional Advice

The important thing is to not go at this alone – barring your being a tax professional yourself, of course. Chances are good that if you were, you would be the one being consulted by others about this rather than being the one reading it. If you are new to home ownership, then you should get help to make sure that you are doing it the right way. . You can always talk with a tax professional that is well-versed in this area to ensure that you don’t wind up getting the attention of the IRS. Otherwise, you’re going to possibly wind up paying more money – sometimes a hefty chunk of it – to make things right. By avoiding these mistakes, you improve your chances of getting through this unscathed.

Written & Published By:

Kelsey Mickens LandHub