Wednesday 23 May 2012

Utilizing Federal Tax Deductions to Offset Property Tax Payments

Appealing traditional property tax assessment is one successful way of lowering tax payments. However, payments can also be lowered by claiming property tax deductions on federal income tax returns. According to the Internal Revenue Service, state and local personal property and real estate tax expenditures may be deducted from federal income tax returns. This means that if an individual makes $100,000 annually, and pays $5,000 in property taxes, he or she is only taxed based on an income of $95,000. This explains the immediate impact of claiming a property tax deduction on one's annual federal return.
Whether a property is meant to be a rental or investment, short-term or long-term residence, it is essential that all those affected by unfair assessors and prodigious tax codes know their rights and responsibilities.  Paying one’s fair share, and nothing more, ensures that all taxpayers feel equally responsible to their local communities.
No one likes to pay taxes. Nonetheless, it is the law for individuals and businesses to contribute to the strength of a local, state, and national economy. Real estate and personal property taxes are paid based on the value of a parcel of land and the buildings that sit on it. Property values are linked to the size, quality, and location of the land and its buildings. An accurate assessment of personal or commercial property is essential to ensuring the payment of one's fair share in property taxes. Contact the expert attorneys at 1-800-529-3476 or visit our website www.1800lawfirm.com to learn how you can benefit from the success of America's Most Trusted Legal Network.

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