Property Taxes

Owning property comes with various advantages. You are able to call a place yours. If you decide to finance your property not only paying down the mortgage, but also building equity in the property. When it comes to property ownership it comes with potential financial benefits resulting to a reduced tax bill.

Property Taxes

If you own property, you likely have paid property taxes. As long as you own the property you are on the hook for its taxes. Property taxes are determined by tax assessors and based on assessed values (can be appealed if you do not agree) on land and structures on it multiplied by current tax rate set by the local government. The point of property taxes like any tax collected by local government it is used to fund community services and projects like maintaining roads. Property taxes are fully tax deductible if you decide to itemize your deductions.

The SALT cap limits the total deduction for state and local taxes, including property taxes, to $10,000 annually for taxpayers who itemize. This deduction applies to property taxes paid on your primary home and any additional real estate you own. However, the combined deduction for all state and local income taxes and property taxes cannot exceed the $10,000 limit.

Tax laws are always changing please advise with your financial advisor, enrolled agent, or CPA. This is not advise in any form.