One of the most common questions I get is in reference to skyrocketing property taxes. Given the fact that I’m a Tax Accountant rather than a Property Tax Attorney, there’s very little that I can actually do to help any client in this regard.
But I have learned a few things over the past thirty-five years of entrepreneuring and property ownership that you may find useful.
Always Contest Your Property Taxes
No matter where you get assessed, always contest your property taxes. I don’t care where it comes in, get someone competent to handle this problem.
Not all counties are the same, and most ownership situations are different, but there are ins and outs that only the professionals know.
If you own a condo, then someone should be doing this on behalf of the entire association. The same applies to townhouses. If you own a single family home, or a commercial property, then you need to get someone on this. There’s always an angle that can save you a bunch of money.
And in keeping the property taxes down, you’re increasing the value of your property. If your taxes are too high, then there’s only so much that a person can pay on a mortgage which will force you to reduce your selling price.
Contact A Property Tax Attorney Prior To Any Purchases
Many properties when sold are simply over-assessed. The people selling the property may have just inherited it or the existing owners haven’t done anything about their taxes in years.
Having competent counsel do a review prior to a purchase will pay dividends. Once a sale is consummated, they should be ready to jump on any problem they find right away.
Sooner is always better than later when it comes to your property taxes. If you wait too long, going backward to appeal assessments can be difficult if not impossible.
Cook County’s new assessor is currently taking a very dim view of the appeals process. Many are seeing our new board being more inflexible than ever.
It’s much easier to get your taxes down while your still in the review time period rather than after the assessment has been finalized.
Don’t Be Afraid To Pay For An Appraisal
It’s a lot easier to get these taxation boards to agree with your numbers when a certified appraiser has signed off on them. It’s not like they’re going to pay for their own appraiser to fight you.
That being said, no matter what your appraisal says, it’s not a guaranteed yes. Its just a lot more difficult for them to say no.
Let me leave you with this.
The business of real estate is one of the few businesses in existence where it’s primarily about saving money, rather than making more.
If you own an apartment building, there’s only so much you’re going to be able to rent a two bedroom for in that neighborhood. You could put in gold-plated toilet seats if you like, but the rent isn’t going to change very much.
Taking an active hand in managing your property taxes is one of the few things that we can do to keep our properties affordable. And that’s whether we’re talking about your condo on Lake Shore Drive or a farmhouse in Michigan.
Insurance is another nightmare. The cost of these natural disasters is all going to be passed down to us. As such, we need to get this quoted early and often.
Repair costs continue to increase. Have you looked at what they want for a 2×4 recently? And if you own commercial property, tenant evaluation remains one of the constants in maintaining building profitability
We’re in a very difficult time for real estate investments. Most Commercial Real Estate has already been devalued by around 20%.
Interest rates don’t seem to be going down any time soon. Finding decent tenants and keeping your commercial spaces rented and collected can be challenging.
As our other expenses continue to skyrocket, we can at least do something to quell the hunger of our greedy counties. Let them go steal from someone else.
And that’s true whether it’s a massive commercial real estate investment worth tens of millions, or just your first home.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
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Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.