Selling Your Home - Property Taxes
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.
How is a assessed value determined?
According the State of Indiana, your home is assessed at its fair market value. Now if you believe that... How is it really assessed? Four factors attribute to the assessed value of your home. First, the land. How much do you have and what would it sell for if no home was on the land. Secondly, the home itself. Size, age, and attached garage space. Thirdly, add on's. Do you have a concrete patio or porch, screened in porch or enclosed, in-ground or above ground pool, detached garage or barn. All of these are add on's and assessed at the 3% rate. Fourth, and most important of all. Location, location, location.
How are property taxes handled at closing?
At closing the unpaid property taxes on your home will be prorated until the day of closing. This is then credited to the buyer to pay the taxes in theory, however it will just lower what the buyer needs to bring to closing. A buyer will pay the taxes in their mortgage payment or to the county directly when due.
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.
How do property taxes work?
In Indiana we pay our property tax a year in arrears, this allows local government to borrow, and in two installments May and November. These funds are used to cover the police, fire, library, poor relief, and schools. The schools tend to get over 60% of the revenue, but it all for the children so they say.
Are property taxes deductible?
Property taxes on all real estate, including those levied by state and local governments and school districts, are fully deductible against current income taxes.
What is an escrow account?
An escrow account is a trust account established by the lender to hold money to pay for real estate taxes, and mortgage and homeowners insurance premiums as they are received each month.