Soar to Success April 2021

Understanding Property Taxes By Karen Cupp T here are two things in life: death and taxes. While you cannot control death, you do have a say in how your property is taxed when it comes to real estate. Most counties make allowances for decreased taxes using a class of exemptions. When looking at properties to purchase consider the tax exemptions applied to a property and how they might change when you purchase it and convert it to a rental property. Howcanyoudetermine theexemptions attached to the property? If you are using a professional realtor, they should answer that question. Either way do your due diligence by going to your county assessor and determining the present exemption status. This can be done online or in person. Make friends with your assessor’s office as they can really becomeyour partner in successfullynavigating this matrix. The tax rate established by the county is applied to the assessed value of the property determined by the county assessor’s office. So, what can be affected? Exemptions! Exemptions are applied to the assessed value which lower this taxable base. Much like deductions work with your income tax. For example, in my county an owner-occupied