RealEstate.com and the Internal Revenue Service offer information to assist with property tax planning, notes the official website of each organization. Property taxes, more technically known as real estate taxes, vary by the local government that imposes them.Continue Reading
The value of land and the associated structures that sit on the land determine property tax amount, states RealEstate.com. These two values are part of a predetermined formula that calculates the tax amount for a given jurisdiction. In certain areas, people are exempt from property taxes under specific conditions. For instance, certain jurisdictions exempt seniors or disabled veterans from paying property taxes.
Property taxes stem from the market value of a home, and that market value can change over time, mentions RealEstate.com. Regardless, the taxpayer pays the same property tax percentage while the value of a home fluctuates. Assessors determine the value of a property to tax. If a taxpayer feels that the assessor's valuation is not fair, he has the right to appeal a property tax assessment.
The Internal Revenue Service offers Publication 530 that addresses real estate taxes, lists the organization's website. This website offers details about what amounts associated with property taxes can be deducted on a tax return. Taxpayers must pay property taxes in order to be eligible for a deduction. Additional considerations also determine eligibility.Learn more about Taxes