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| Using Property Taxes to Reduce Federal Income Taxes Taxes are everywhere -- from the items you purchase to the property you own to the money you make. But how can paying one tax help you save other taxes? Paying your property taxes early can help reduce your federal income taxes. Property taxes are deductible on many federal income tax forms. By paying two years of property tax in one year, you can increase your deductions on your income tax, resulting in lower income taxes due. Here's how it works: Let's say you pay your 2006 property taxes by January 31, 2007. That tax payment is deductible from your 2007 income taxes. To increase your deductions, you can pay your 2007 taxes before December 31, 2007 and also include that payment on your 2007 income tax return. If your taxes are $5,000 per year and you pay 2006 and 2007 property taxes in one year, you now have $10,000 in deductions to include on your federal income tax return. Additionally, you then pay no taxes in 2008, since you have already paid the 2007 taxes. Then, in 2009, you can repeat this process for the 2008 and 2009 property tax years (pay 2008 taxes by January 31, 2009 and 2009 taxes by December 31, 2009). While this mainly applies to people who itemize their taxes, it is still an effective way to have one tax help reduce another. If you feel your property's assessed value is too high, it's your right to file a formal protest. You can protest your property value yourself, or hire a professional consultant to handle your protest for you. Either way, there's no reason to pay more property taxes than is required by law. Click here for FREE useful information to reduce your property taxes Visit our NEW source for the latest up-to-date property tax news! Questions? E-mail O'Connor & Associates, or call 1-877-4-TAXCUT. Please help us! We are conducting a survey to educate legislators regarding problems with the property tax appeal process. You can help by taking 2 minutes to complete this survey. You will receive a copy of the survey and FREE tips on how to appeal your property taxes. Click here to take our survey. » Hire O'Connor & Associates to reduce your property taxes. You pay NOTHING unless we save you money!  Please send me periodic tips on reducing my taxes. O'Connor & Associates -- Your Key to Real Estate Value Corporate Office: 2200 North Loop W., Suite 200 Houston, TX 77018 1-800-856-7325 Dallas * Houston * Los Angeles * Newport Beach If you would like to be removed from this list and receive no future real estate information, click here to unsubscribe. |
Property Tax Tips
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