The happiness of owning your property, be it a commercial or residential one, has no end. Land and buildings are indeed valuable pieces of assets. However, property ownership does come with its own challenges.
If you own a property, you would likely have to pay the annoying and frustrating but unavoidable property taxes. The amount you pay in your taxes will vary from place to place. Fortunately, you can use a few tips and tricks to lower your taxes and save some extra money. For additional information, you may contact an individual tax preparation in Phoenix.
Tips and tricks to reduce your property tax
- Review your property tax assessment.
In an assessment, a government-hired assessor estimates the market value of your property, and your local tax collector sends you your property tax bill, which is based on this assessment. You can view how your property taxes are estimated by visiting your local tax authority’s website. By putting in the parcel identification number, property’s address, or the owner’s name, you can access valuable information about your property assessment.
- Limit home improvement projects.
While you may want to improve the interiors or exteriors of your house, it is essential to remember that they increase the value of your home. When your property’s value rises, so do your taxes. Boosting curb appeal, redoing the kitchen, or adding a pool for your kids can surely improve your living experience, but it also increases your property tax bill.
- Limit curb appeal.
Even if the inside of your home is not breathtaking to look at, making physical improvements can cause you to pay more taxes. Remember that aesthetically appealing houses will have more value than dull, unattractive ones. Therefore, it is suggested to know when the assessor is scheduled to come to your place and resist the urge to do a make-over to your property.
- Check for local exemptions.
The government has made tax exemption rules for a specific group of owners and property users. While they may not bring your taxes down to zero, they certainly help you save a few bucks. Usually exempted from property taxes are senior citizens, veterans, and the differently-abled. There is another exemption called homestead exemption which can be helpful to people who use their property solely for residential purposes.
- Participate in the assessment.
Walking with the assessor during the assessment while they are making notes of your house can help you lower taxes. The assessor will make notes on positive things like a new pool or renovated kitchen during the assessment. You can point out the negative features, such as defects in the house, to get a more accurate picture of your home.
You can only save yourself from the hefty property taxes if you know the right tricks. If you need help with your tax returns this year, professional tax preparers can make the task easier.