Buying Your Home - Property Taxes
Are taxes on second homes deductible?
Mortgage interest and property taxes are deductible on a second home if you itemize. Check with your accountant or tax adviser for specifics because the tax laws have recently changed.
Do all loans require escrow accounts?
If you are taking out a FHA or VA loan, the lender can require an escrow account to pay real estate taxes and hazard insurance premiums, as with a standard loan. Most conventional loans do not require an escrow account.
Are property taxes deductible?
Property taxes on all real estate, including those levied by state and local governments and school districts, may be fully deductible against current income taxes. However, new tax laws may have changed the amount of tax deduction you can take. Please consult your preferred tax professional.
Where can I learn more about appealing my property taxes?
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. You will need market data for the appeal, so just call First American Real Estate, Inc. for assistance.
How do property taxes work?
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.
What is an escrow account?
An escrow account is a trust account established by the lender to hold money to pay your real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.
How is a home's taxable value determined?
Contact your local tax assessor's office to find out how they determine the value of your property.