Soar to Success April 2021

SOAR TO SUCCESS / Core Business Strategies home is allowed a $6,000 dollar exemption on the assessed value. Letmeshareastory. Iwasheadingout toa listing appointment for a friend of mine. She had lived in the house for 24 years and was considering listing her home with me. As a professional, I checked the county site for her property taxes. To my shock I found that she was not taking advantage of her owner-occupied deduction. Doing so would have lowered her annual tax bill by $500. I immediately contacted the courthouse who clarified that with a trip to the office and a stroke of a pen, she could save that money on her upcoming tax bill. Imagine the joy on her face when I shared this little-known tidbit. (note I did not let her know that over the 24years she couldhave saved around$11,000.) One other exemption to watch for is the senior and senior freeze exemptions which lower the property tax amount. With the senior freeze, the property assessment is frozen all the way back to the year it was established. When you are in your due diligence phase, contact your taxing office and ask them to help you determine what the new property tax might be when you purchase it. (assessed value without exemptions multiplied by the current tax rate). Overall, themain point is that as an investor you need to understand what these exemptions are and how they affect property. Smart investors continue to educate themselves so that they can put more money in their pocket!