Property Tax Attorneys

There is little else in life that sends a shudder through homeowners then the anticipation of what their next property tax bill will state. In some areas of the country, a significant amount of tax revenue is on the backs of personal property owners making this tax the number one burden for homeowners. Do you understand your taxes? If not, you should as your lack of knowledge could cost you thousands of dollars.

In many locales, property taxes are due on a quarterly, semi-annually, or annual basis. The higher your tax burden, the more likely that a municipality will allow you to determine how often payments may be made. In some areas of the country, the state legislature makes that determination.

When your tax bill is due, it is quite frankly: due. In many cases you are given up to ten days after the due date to make payment, but going beyond that means your taxes are in arrears and you will face penalties and interest charges. Let this go on too long and the municipality could place a lien on your home, even force you into foreclosure. That is one reason why most locales require you to make monthly property tax payments with your mortgage payment. In addition, you could be required to carry an escrow amount to cover your upcoming property taxes. In this situation, the mortgage company will send payment to your municipality on your behalf.

Should your home be under construction, then the taxes you are paying will be estimated by the municipality. Once construction has been completed a corrected copy of your tax bill will be sent to you. If there is a shortage involved, you may be required to write out a check on the spot for the shortfall or spread that amount over the next several months up to one year.

If there is an error with your property taxes or you believe you are paying too much, you must follow the procedures listed on the bill to respond accordingly. If there are no instructions given, simply call the phone number on your invoice to speak with a clerk in the tax office. You may be able to speak with the tax collector who can go over your bill with you. If there is still a disagreement, you can protest your bill formally and go through a court hearing to air your case. If you lose, you will be expected to pay whatever charges have been levied. For more articles like this, bookmark http://PropertyTaxAttorneys.info

By: Joseph Hanoa

Property tax attorneys can help you quickly calculate and assess what your correct property tax valuation is and should be.  All too many home and property owners leave money on the table by not understanding how to calculate their property taxes and that they have the ability to appeal and refute the current property taxes that they are paying.  Contact a property tax attorney today if you have more questions.

How exactly does your city come up with your property tax value? Are you concerned that your real estate taxes might be unfairly high and want to see if you are eligible for a reduction? That is what we discuss here.

First of all, no matter how confusing your property tax statement is, with all of the various terms, ratios, millage rates, etc calculating your real estate taxes really boils down to only a few factors: the market value of your property, your cities assessment ratio and the tax rate.

The market value is what your property would sell for on the open market, without any “undue influences,” like being in a state of foreclosure, structural issues with the property, short sales time frame, etc. Again it’s what your property sells for under a normal sale.

Property Tax Valuation

The assessment ratio is very important to calculating your real estate taxes and is what is sometimes referred to as your “property tax value”. What cities do is multiple your market value, by the assessment ratio, the resulting number is the assessed value.

For example if your properties market value is $500,000 and your cities assessment ratio is 80% your property tax value would be: $500,000 x .80= $400,000 assesed value. Assessment ratios vary from state to state and from jurisdictions. Your assessment rate could be totaling different than your neighboring town.

Tax Rate

The tax rate is also known as a millage rate and is the actual rate that property owners pay in their given town. Like the assessment ratio the tax rate varies from town to town and also from building types. For example a commercial building will be taxed at a different rate than a single family home.

In addition, a single family home used as a rental property will normally be taxed at a high rate than a single family home that is occupied by the owner.

To figure out your annual taxes you multiple the tax rate by the assessed value. For example take the assessed value of $400,000 x .020 (tax rate/millage rate) = $8,000 in annual property taxes.

Property Tax Valuation

On a real estate tax appeal you can only debate the fair market value of your property. You cannot argue the tax rate or the assessment ratio (unless they made a mistake and recorded your property in the wrong category). But again, you can only argue the assessors opinion of your properties value. Keep in mind that most cities assessors are over worked and or under qualified, so they very often make outright mistakes. If you know of other similar properties in your area that sold for less than what they have recorded your property at, than you most likely have a case and could save a lot of money.

Don’t be like the 98% of property owners that don’t bother to appeal their real estate taxes. They are leaving thousands of dollars on the table for no reason. The process to appeal is really not complex and won’t eat that much of your time.

Author: Jeff Rauth

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Property tax attorneys can work with you to help you understand how to obtain cost segregation studies to potentially defer and even reduce your overall federal income taxes.  Contact a property tax attorney today if it sounds like this information and advice may apply to you and your situation and find out how you, too, may be able to save significantly on taxes.

Depreciate Property Improvements Correctly With Cost Segregation

Most commercial building owners are grossly overpaying federal income taxes because they are not depreciating their property as quickly as they should. A cost segregation study allows property owners to both defer and reduce federal income taxes. When properly performed by an appraiser with expertise in cost segregation, this is a conservative tax planning tool which reduces federal income taxes by properly allocating the cost basis between land, 5-year, 7-year, 15-year, 27.5-year and 39-year property.

Cost Segregation Study Benefits

Benefits of a cost segregation study are substantial, immediate and enduring. Year 1 federal income tax savings are typically at least two times the cost of a cost segregation study. In many cases they are five to fifty times the cost of the study. The present value of federal income tax savings for a property held for ten years are typically at least ten times the cost of the study. In many cases, the present value of tax savings as much as 30 to 50 times the cost of the report. The cost segregation study is only required once. Its cost is not recurring, but the benefits are recurring during the term of property ownership. A cost segregation study can also materially reduce local property taxes by separating real and personal property for newly constructed properties.

 Detailed Example

Preparing a cost segregation study requires only a limited time commitment from the owner, perhaps 10 to 15 minutes. This limited commitment of time results in substantial tax savings, which are both conservative in approach and well documented. Some owners believe their accountant is properly segregating components into the proper classifications. Many accountants cannot thoroughly research this highly specialized field to understand the myriad of items which can be segregated and are inadvertently overstating their client’s income tax liability. Furthermore, not obtaining a cost segregation study increases exposure in case of an audit since there is no clear audit trail. A cost segregation study prepared by an appraiser with expertise in land valuation, construction costs and market value clearly documents each of these items. Further, a cost segregation expert can almost certainly sharply increase allowable depreciation.

Who Benefits from a Cost Segregation Study

If you own real estate and pay federal income taxes or expect to during the ownership period for the property, you will benefit from the results of a cost segregation study. This is true whether the ownership to the real estate is titled in a corporation, limited partnership or limited liability corporation. For syndicators, a cost segregation study is appropriate if limited partners will receive material net taxable income during the holding period even if the general partner does not currently pay federal income taxes. The cost segregation study will increase depreciation shield, thereby decreasing and deferring federal income taxes for the investors.

Decreasing and Deferring Federal Taxes

Since a cost segregation study decreases and defers federal income taxes, let’s review the long-term impact of this deferral. When the property is sold, capital gains tax will be due if the owner does not enter into a 1031 exchange. However, capital gains tax rates are typically 20% - 25% for high net worth individuals, while the ordinary income tax rate is 35%. In addition, the deferral during the ownership period has material benefits because of the time value of money. All investors would much rather pay a 20% - 25% tax rate when an asset is sold as opposed to paying a 35% tax rate today.

When Should You Obtain A Cost Segregation Study

The best time to obtain a cost segregation study is when you build or purchase a property. Documentation is most readily available for performing a study and a contemporaneous property inspection can be performed to best document results. However, there are options to perform a cost segregation study for property which has been developed or purchased previously.

Elements of Preparing a Cost Segregation Study

The appraiser starts by gathering documents from the property owner and performing a site visit. As necessary, depending on the special-use property found during the site visit, the appraiser would confer with tax counsel and review relevant tax court decisions. For newly constructed properties, most of the costs detail can be obtained from construction draws or invoices from contractors. For existing properties, the appraiser performs a quantity take-off for 5-year, 7-year, and 15-year property and estimates replacement cost using recognized sources. The appraiser then values land, 5-year, 7- year, 15-year, 27.5-year and 39-year property based upon inspection, analysis and IRS regulations and court rulings.

Does this only apply to large owners?

Both large and small owners of income property or owner-occupied commercial property can benefit from a cost segregation study. Commercial properties with a cost basis of at least $200,000 will likely see a material benefit in excess of the cost from a cost segregation study. In fact, owners of single-family rental homes can probably achieve worthwhile benefits by obtaining a cost segregation study.

Qualifications to Consider when ordering a Cost Segregation Report

The ability to value land and real property are critical elements when engaging a tax reduction expert to perform a cost segregation study. In addition, it is essential they have a detailed understanding of rules for classifying 5-year, 7-year, 15-year, 27.5-year and 39-year property. The ability to justifiably increase short-life depreciation materially increases the benefits of a cost segregation study. While most accounting professionals have a rudimentary understanding of the 5-year, 7-year and 15-year property classifications, few have a detailed understanding of this highly specialized niche. Be certain the report provider has scrutinized both the federal income tax code and the meaningful tax court cases to allow you to maximize your depreciation and minimize your federal income tax liability.

By: Patrick OConnor, MAI

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Property tax attorneys can help you decipher your property tax bill, and ensure that you are paying the correct amount of taxes.   Property taxes can be confusing at best, so do not allow this confusion to get you  behind on your property tax payments.  Contact a property tax attorney today for legal counsel and representation if necessary to get your property taxes straightened out, understood and under control.

How To Understand Your Property Tax Bill

The first thing to understand about your property tax bill is the language used in them. Many people look at the tax bill and see a bunch of numbers that have no meaning to them. In reality, they do have a specific meaning to the property owner. If you do not understand what the sections on your property tax bill mean, you might not know if this bill is accurate or not. Here are some terms that you will see when looking at the tax bill.

Fair cash value is what the property can be sold for between two parties without any duress. Some duress sales include bank foreclosures and short sales. The assessed value of the property is what the city or county deems a fair assessment of what the property is worth. This is figured out by comparing your property to similar properties in the same area that have sold recently.

 Exemption means the removal of said property from the tax base, this is only a part of the assessed value of the property. This might hold true for someone who is blind that gets an additional amount off the assessed value. It may also be due to a homestead exemption. If it is for a home that is considered a religious property for worship only, you can claim the tax exempt status if you only use it for church activities, no personal use.

When you look at the property tax bill, you will see the tax rate. This is the tax due on the property after being calculated with percentages of the tax base. The term taxing district represents the schools and local government that has the levy against your property taxes. The tax code is used for office purposes of the county clerk that represents a combination of taxing structures or bodies.

Once you understand the property tax bill terminology, it does make it a little easier to understand your tax bill. If you discover any problems or you have issues with the tax bill, you can request a property tax appeal with the help of a property tax lawyer or consultant. It is always wise to consult an attorney before taking such a step where property tax and the government are concerned. You might even have questions regarding the fair market value of your property, especially in places like Palm Beach County, Florida where prices have gone down significantly. You can always question the bill before paying it, if you do not receive answers that you understand, visit a property tax consultant and see if they can help explain the answers you need to your questions.

By: Mark Palm Beach Realtor

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Property tax attorneys can be of great assistance when it comes to estate planning, and how  to best handle passing along assets such as homes and property to heirs and even charities. 

You should also inquire about specific property tax laws in your state, and how property transfers or changes in ownership may affect property taxes in the future.

Contact a property tax attorney today if you have questions about how to best handle any properties that you may wish to keep in your family and pass along to your heirs.  This small investment in a tax attorney may pay many fold in the years to come.

In California, one’s property tax basis can increase only 2% per year unless a change in ownership is recognized. This bodes well for children of property owners: parents can pass on a house to their children without recognizing any change in ownership. The effects can be significant. Well meaning parents often lose the exception from reassessment inadvertently. In this article, we explore three ways that the exception from reassessment can be lost, and what to do about it.
Read more…

Property tax attorneys can help you sort through a variety of tax questions regarding your property, business property, your home, and much more.  Contact  a property tax attorney today to ensure that you have a firm understanding on your real estate taxes and property taxes.  You may be paying far too much, particularly with today’s depressed property and home values.

Real Estate Taxes Vs. Personal Property Taxes

Lots of people, like you, are living in confusion. Uncertainty clouds their minds and keeps them from ’seeing’ the truth as it really is. Take for example, distinguishing real estate taxes from personal property taxes. There are some individuals that don’t know the difference between the two. One reason behind that can be traced back to our teachers during the good old schooling days. That is completely understandable, because the way they explain the subject matter is so darn boring! When they finally hammer the information needed into the back of our heads, it’s quickly forgotten - who would want to remember a boring part of their life anyway? SO without further delay, I’ll be discussing the difference between the two in the simplest terms possible.

First and foremost, real estate taxes are slapped on to real property. Real estate is immovable prop, like land and all the infrastructure or improvements on it. For deeper understanding of what the immovable is, check out the following examples: a house is considered to be attached to the land permanently, which cannot be moved whatsoever, so it belongs to this particular category. Other examples include buildings, ranches, farmhouses, and other infrastructure attached to these are classified under real property, which means they’ll be charged real estate taxes. Moving forward, personal prop includes your movable assets, almost everything not belonging to real property.

An example of this would be your car, the animals or livestock you own, your furniture, and even your money. They aren’t permanently attached to the ground on which they stand, which makes them more than qualified to be grouped as personal prop. Getting back to the topic on tax, personal property taxes are assessed on property that’s used in business only, my friend. The local assessor in your area has the responsibility of providing you with a form, in which you’ll be given the obligation of filing it up. With it, you’ll be required to state the value of your property.

On the other hand, real estate taxes will be assessed on either residential or industrial property - how much will you be expecting to pay here? Well that’d depend on the market value of the real property. Here’s a tip for you to always keep in mind that you may gain an idea on how more or less it works: know the value of it. This is important because the higher the value, the higher the real estate taxes will be. They rise in numbers accordingly. The value is assessed yearly by the assessor’s department. They send a notice to the tax payer each January that you may know it (obviously).

There are some instances though when you’ll be ‘tax exemptions’. The most common criteria for judging whether or not you’ll be qualified for the exemption would be your age, and the state of your disability (if any). Basically, this is the difference between the two types of taxes. If you’d like to get into the details, it’d be wise to do some research.

By: Rick Goldfeller

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Property tax attorneys can work with you to not only fix property tax issues, but work with you proactively to ensure that your home and/or property has been property assessed and that you are paying the correct amount of property taxes.
Indeed, many home owners, including myself, found that they had to work pretty hard to get the new (and much lower, unfortunately) value of their home into the hands of the assessor to not overpay.  Of course, when home and property values are rising, there seems to be no delay in those assessments!

If you find yourself in a bind with property taxes, do not delay, contact a property tax attorney immediately to get your property tax situation under control and protect your financial future, and one of your key assets, your home.

Most homeowners were stunned at the way the prices of their properties crashed through the roofs. The only solace they thought they had was that they would have to pay less property tax, but most of them soon discovered that this was not to be.
Read more…

Property Tax Attorneys offers 10 potential ways you can cut your property tax bill.  If you have any questions about these tips, or currently have deliquent property taxes or other property tax issues, a property tax attorney can assist you with your questions and potential legal representation.

10 Ways To Cut Your Property Taxes

Property taxes are decided collectively by school boards, town boards, legislators, and councils. The tax rate is set by collating the amount of funds an area needs. This is then divided that by the ‘total taxable’ assessed value of the area. The tax an individual pays is computed by multiplying the tax rate by the assessed value of your property and then deducting any applicable exceptions. Property taxes are at an all time high. Studies indicate that they have increased more than 35% in five years.

Property is assessed by determining property costs in any given area. Property is valued by studying: the current sale price of properties in the area, costs to be incurred to replace the property, potential realization of property if it is rented, sold, or gifted, and the historical value of a property.

There are a few ways in which you could save on taxes:

1.  Check if the state you reside in is offering any rebates. For example, a money back rebate, energy rebate, capping of taxes, or home owners rebate where under certain conditions you may be eligible to claim a rebate.

2.  Ensure that the property is assessed right. This will ensure that you do not have to pay excess taxes. Assert your right to check you assessment report ensure that there are no miscalculations, mistakes, or assumptions. If in any doubt, do put in an appeal. According to statistics almost 50% of the cases win some relief.

3.  Check all exemptions allowed according to the law.

4.  Buy property jointly with a partner or family member. This way both owners become eligible for tax rebates.

5.  Check if your assessment is in according to other properties in your neighborhood. Check with the assessment office or with your neighbors themselves. It helps to know applicable laws. Use the help of a real estate professional to put together a file of properties similar to yours that have a lower assessment. Or, use the bank’s appraisal to support your case. Be sure that the case you gather together is water tight.

6.  Use a property consultant to help you save taxes. Some charge a flat fee while others just a percentage of what you save. A professional will check how assessment is done and also if there are any loop holes you can use.

7.  There is strength in numbers. Get together with other owners who are also checking or fighting assessments. Check on the National Taxpayers Union Web site http://www.ntu.org for your rights.

8.  Ask you home loan provider whether you are eligible for refund of property taxes paid. Some agreements have a provision for this. Many mortgages have automatic escrow of taxes.

9.  Even before you buy a home find out what the property taxes are in the area and what have been the increases in tax rates.

10.  Be sure to read through assessment and tax manuals published by your local authorities. These will give a clear idea of what are the parameters used and what you must do to reduce or pay the correct property taxes.

In order to be money smart you need to get the help of an efficient and dedicated accountant, plan your tax liabilities well, known thoroughly all aspects of Property Tax. If you are prudent, you can benefit by using ways and means to cut your tax burden and liabilities.

By: paul wilson1

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