The Federal US and state governments collect over half a trillion dollars in property taxes during 2017.

We all know that taxes are unavoidable in life. But that doesn’t mean you shouldn’t know how they work and try to get a better deal.

Learning a little bit about property tax law is a good place to start. Read ahead to learn more about how property taxes are calculated, collected, and distributed.

Render unto Caesar…

Sometimes, it seems like the government is always trying to get into your pockets. They take part of your paycheck, tax you when you shop, tax your car, and they tax the properties you own.

That’s the own minor detail they don’t mention when you hear about the American dream house with the white picket fence.

Jokes aside, you aren’t going to avoid them altogether so it’s best to learn to work with them.

Property Tax Law in the US

Any form of real estate can be subject to an ad valorem tax. That means the tax is calculated based on the value of the property in question.

In theory, someone who owns a large piece of land with a mansion by a popular beach on it will expect to pay more than someone who owns a small plot in a desolate area.

Equity in Real Estate

Any real estate attorney knows that equity and mortgage are crucially important terms in the world real estate and investing.

A mortgage is a type of legal agreement between a buyer and a seller. Generally, when someone ‘buys’ a house, they’re actually agreeing to pay for the house in installments over time. The seller has the right to take the house away if payments are not met.

A lot of mortgage plans take thirty years to pay off completely. However, many people try to do this sooner by paying more than the minimum monthly requirement.

Why Calculating Equity is Important

The more you pay off, the more equity you have, and the more you actually own the house. To calculate equity, you simply subtract how much you owe on the mortgage from the value of the house.

Therefore, if you just moved in and started paying, your equity is probably low. However, if you have been paying more than the minimum over the last eight years, your equity should be high.

Equity is important for a couple of reasons. One, it put you in a better position to refinance and get a better deal. Two, it’s makes selling your house more attractive to buyers and more profitable for you.

Cash Home Buyers

Sometimes, it’s better just to flip and dip. What’s better than cold, hard cash?

Have you thought about selling to a real estate investor? It might be the best decision.

If you sell your house for cash, you guaranteed money to invest in something more profitable or important.

Finding Help with Property Tax Laws

Real estate can be an enjoyable and lucrative field. However, there are ins and outs so it can be confusing. The laws change from state to state and county to county.

Property tax law attorneys and accountants study these topics for years. Many of them are working for the bank and don’t have your best interests in mind.

Stay informed so you can decide what’s right for you. Visit our blog for more articles about real estate news and advice.

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