Let me tell you
How it will be.
There’s one for you,
Nineteen for me,
‘Cause I’m the taxman.
Yeah, I’m the taxman.
You guessed it – Lyrics to “Taxman” by the Beatles. Great song and I’m sure the boys were not thinking about tax issues relating to buying and selling real estate when they wrote the song (or maybe they were) hmmm.
We I always consider tax issues when it comes to real estate and I encourage my clients to do the same. Here are five questions you should ask about a property:
1. What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.
2. How often are properties reassessed, and when was the last reassessment done? In general, taxes jump most significantly when a property is reassessed.
3. Will the sale of the property trigger a tax increase? The assessed value of the property may increase based on the amount you pay for the property. And in some areas, such as California, taxes may be frozen until resale.
4. Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate.
5. Does the current tax bill reflect any special exemptions that I might not qualify for? For example, many tax districts offer reductions to those 65 or over.
Call me for more details about the “taxman” when it comes to real estate!
Seattle Rattle Blog 