Doing your taxes correctly is difficult enough without falling prey to misinformation. In order to get the most out of your return and make sure you don’t miss out on deductions you deserve you must inform yourself with quality information from reliable sources. Read up on these common myths that could result in incorrect filing as well as overlooked deductions.
Myth 1: Property Examiners Can Define Your Tax Percentage
Contrary to popular belief, the assessment that a property examiner performs on your home or land does not directly determine the percentage of taxes you will pay. In contrast, an assessor will actually uncover the worth of your residence, which is used a one factor of what you will pay in property taxes. The percentage itself is established by your local or state government.
Myth 2: If You Pay High Property Taxes it is Only Because of Your Property Examination
The value of your property that results from its examination is only a piece of the property tax puzzle. If your property is assessed at a high value, you may experience higher taxes. But while the assessment itself helps determine your percentage, the tax rate for your area is of greater importance to your tax amounts than the mere examination of property value. If you believe your home value has been created in error, you can file an appeal that could result in a reexamination.
Myth 3: Your State is the Main Benefiter of Your Property Tax Dollars
Although your state receives some of your property tax dollars, more of your money actually goes toward funding your area’s pinpointed government and educational programs. If your state is one that does not charge sales tax or income tax, more of your property taxes will be used to fund your state government than states who do use sales and income taxes to stay afloat.
Myth 4: Your Property Taxes Will Always Be Lower With Assessment Caps
Despite the aid that assessment caps are meant to provide to homeowners, depending on your home type and age, they could actually be detrimental to your home value. Homes that increase in value at a quickened pace are averaged with home values that grow at a slower pace, resulting in an assessment cap. Depending on whether you have a slower growing valued home or a quickly increasing value, you may or may not benefit from the cap. In fact, if your home value is crawling, your valued could be capped at a higher level due to values within the community surrounding.
Anastacio Mindiola is a lawyer and an entrepreneur. He assists home owners appeal residential property taxes in Harris and the surrounding counties.
- Wesley Snipes: Failing To File Income Taxes (2010taxes.org)
- Tax Carnival Ecstasy – October 25, 2011 (2009taxes.org)