Start Saving Hundreds On Your Property Taxes
Homeowners Are Failing To Claim Valuable Tax Deduction
If you own a home that is considered to be your permanent residence and aren’t taking advantage of the 2.5 percent homeowner deduction on your real estate taxes, you could be leaving hundreds of dollars on the table.
In 2016, according to WalletHub, residents with homes valued at $176,000, found themselves on the receiving end of a $2,729 real estate tax bill. However, if they were to apply the 2.5 percent homeowner deduction, they could reduce their annual bill by nearly $70!
Now imagine what the short- and long-term savings would look like if your home was valued at $200K, $300K, $500K or more!?
To qualify for this owner-occupied reduction, a homeowner must own and occupy the residence as their primary domicile as of Jan. 1 of the tax year.
So far this year, we’ve discovered that quite a few homeowners, especially those who have chosen to build their home on recently purchased land rather than buying property with an already established house, are missing out on this valuable opportunity.
Too Valuable To Miss
The amount of money homeowners can save, compared to the amount of time it takes to apply for this benefit for homeowners is pretty incredible. Furthermore, some counties will even refund homeowners for the years in which they should have been given the deduction.
For one client in particular, the savings were truly remarkable. Not only will he save around $400 on his real estate tax bill every year going forward, but since he failed to claim the deduction over the last five years, the county refunded him nearly $2,000 for the missed deductions!
Depending on the value of your home and how long you’ve gone without claiming the reduction on your real estate tax bill, you could be looking thousands of dollars of unclaimed savings. Just remember that not all counties will issue a refund; but it’s always in your best interest to give them a call and ask.
Stake Your Claim
Not sure if you’re receiving the tax reduction? Find out by simply taking a closer look at your real estate tax bill. It’s really that easy. In fact, it only takes a minute to see if the deduction is currently being claimed and, if it’s not, about 10 minutes to apply. Plus, you only have to apply once to continue receiving the benefit for as long as you are required to pay real estate taxes.
If you aren’t already receiving the homeowner deduction, visit your county auditor’s website to find the application. Once complete, sign it and send it to your county auditor’s office (oftentimes, the address can be found in the application itself).
Email Rea & Associates to discover other ways in which you can maximize your tax savings strategy.
By Joe Giorgio (Medina office)