SAVE HUNDREDS OF DOLLARS ON YOUR PROPERTY TAXES!

Obviously, there are eventual great benefits to your currently owned property growing in value, as they are in today’s market place. Home values are gaining about 5.5% per year, which is a nice return on investment compared to most investments today. For most folks, there are also no income tax ramifications for this gain up to $250,000 for individuals and $500,000 for couples, even when they sell and get the cash in hand. Now, I am not a tax advisor and you should check with your accountant or tax attorney on how you would be effected. But, there are also some negatives to this increase in value. In most states, Minnesota included, the property tax, which you pay annually (in two payments), is calculated as a percentage of your home’s value. As your home value goes up, therefore, so do your property taxes. Property taxes went up $524 billion dollars nationally this year over last according to Rismedia. (you can see the article on my website, Mnhomesbydave.com under the Real Estate News tab). But, you are allowed to appeal this tax increase and many people get adjustments. The best way to do that is to provide similar properties which have sold recently to the taxing authority. A local full service, knowledgeable Realtor should be able to help you obtain these “comps”, as we call them. The best time to start the process is when you get the Proposed Tax Statement for the following year. There may be a small charge for that service, but it could save you hundreds, maybe thousands of dollars next year. I have helped many of my clients with that process and I provide it on a complimentary basis. Give me a call if you have any questions. Thanks for reading.

David Feerhusen

David Feerhusen

Broker/Realtor, CDPE, GRI, CRB
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