property tax
One of the reasons that my husband and I do not own our own home yet is because of property tax. Though we live in a really great area that has some of the best schools in our state, the rate of tax is much higher than almost anywhere in the country. We do not live in an urban area, so this is somewhat of a mystery. We aren’t sure why it is, but people here are paying more tax on their property than they should be. Perhaps that is why we have such good schools, I really don’t know, but I do know that is why we don’t own just yet.
Many people don’t consider property tax when they decide they can afford to buy their own home. They may think they can get a mortgage that is equivalent to what they pay in rent. That might very well be true, but you can not forget about property tax when you are deciding if you can afford the mortgage or not. There are many hidden things that come with home ownership, and that is just one. You are also going to have to make your own repairs, and you are going to buy your own appliances. These are things most landlords take care of when you rent from them. When you buy a house, those things fall on you.
You might want to find out what your property tax might be before you buy something. Though this is a smart move, some don’t do it, and they are shocked when they get their first tax bill. This can ruin the dream of home ownership for many. If yours are high like mine are, you may not be able to get the house you think you can afford. You may have to go with something smaller so you can have a smaller monthly house payment. That might be the only way you can afford your property tax.
If you can’t pay your property tax, you should know that you could very easily lose your house this way. If you are having problems paying it, you have to talk to your bank. They may be able to extend you more of a loan to cover it, but don’t expect them to do that more than once or twice. Only do that if you have an emergency, and remember that it’s not free money, you still have to pay it back. In many cases, the bank won’t help you with that, and you will be on your own.
Wednesday, March 26, 2008
Small Business Tax
Small Business Tax
You have to watch every little thing when you are staring your own business. One little misstep can land you in a lot of hot water. Though most people know this, there are some who start a new business when they don’t know what they are doing. I worked for such a woman once, and it was no surprise when she had to sell her business a few years after opening. One thing she neglected to keep an eye on was her small business tax, and she ended up in over her head.
You have to have a lawyer and an accountant if you want to be successful. You can’t possibly keep things in check all by yourself. No matter how smart or how hard you work, you can’t possibly keep up like you need to. There are so many different things you have to know and have to do. Your small business tax is something that you have to keep track of, but you should make sure your accountant stays on top of it for you as well. If anything, make sure they are checking over what you are doing as a failsafe.
If you don’t understand anything about a small business tax, you have to find out, or you have to really trust that your accountant knows what they are doing. In most cases, you won’t have anything to worry about, but bad things happen. One mistake can snowball into something larger. The woman I worked for had this exact problem. I was taking care of some of her work load, but I was strictly data entry, and I made sure she knew this. I basically organized the financial information she gave me, and then it was handed over to her accountant. I know very little about small business tax, and I made that very clear.
We parted company early last year because she could not longer afford to pay for the extra help. That was the first clue that something was wrong. I have talked to her since she had to sell, but I’m not exactly sure what happened. I do know it had something to do with her small business tax and some of her records. She was bad about getting receipts, and there were too many holes. She was nice woman with a good heart, but she was in over her head. Read up and understand what is going on and what is expected of you so that you don’t end up with the same fate.
You have to watch every little thing when you are staring your own business. One little misstep can land you in a lot of hot water. Though most people know this, there are some who start a new business when they don’t know what they are doing. I worked for such a woman once, and it was no surprise when she had to sell her business a few years after opening. One thing she neglected to keep an eye on was her small business tax, and she ended up in over her head.
You have to have a lawyer and an accountant if you want to be successful. You can’t possibly keep things in check all by yourself. No matter how smart or how hard you work, you can’t possibly keep up like you need to. There are so many different things you have to know and have to do. Your small business tax is something that you have to keep track of, but you should make sure your accountant stays on top of it for you as well. If anything, make sure they are checking over what you are doing as a failsafe.
If you don’t understand anything about a small business tax, you have to find out, or you have to really trust that your accountant knows what they are doing. In most cases, you won’t have anything to worry about, but bad things happen. One mistake can snowball into something larger. The woman I worked for had this exact problem. I was taking care of some of her work load, but I was strictly data entry, and I made sure she knew this. I basically organized the financial information she gave me, and then it was handed over to her accountant. I know very little about small business tax, and I made that very clear.
We parted company early last year because she could not longer afford to pay for the extra help. That was the first clue that something was wrong. I have talked to her since she had to sell, but I’m not exactly sure what happened. I do know it had something to do with her small business tax and some of her records. She was bad about getting receipts, and there were too many holes. She was nice woman with a good heart, but she was in over her head. Read up and understand what is going on and what is expected of you so that you don’t end up with the same fate.
Tuesday, March 11, 2008
Tax Assessment And Information On Juristdiction
In most jurisdictions, tax assessments happen every few years (and often in the first year you own your home). What should you do if you are unhappy with your new assessment? Consider appealing it. Experts estimate that up to 60 percent of home assessments are too high and about one-third of all property tax appeals succeed. They key is to act promptly because there's always a time limit to file an appeal.
Get your property card. The first thing to do is to ask your assessor's office to see your property card. The property card shows all the information on your home and land. Ensure its accuracy since the lot size, house square footage, number of rooms, bedrooms and bathrooms enter into the assessment. Make sure the card doesn't describe more house or land than you own. If the property card is incorrect, you may get your assessment changed without a formal appeal. Check for an error in the tax rate for your home as well. Jurisdictions often have different tax rates for homes with rentable spaces, homes zoned for commercial use, homes in a historic district, or other provisions. Be sure your property is being charged the correct tax rate.
Check the market value. If your property card checks out correctly, check on your home's market value. Assessed values are based on a percentage of market value which may be listed on your assessment or supplied by your tax assessor's office. If you have had a recent home appraisal to refinance your home or to get a home equity line of credit, you may be able to use it as evidence of market value. It may also help to search online for sites that show what homes in your neighborhood sell for. You may have a good case for reducing your assessment if you find similar homes at lower values.
Compare your assessment. Check your assessor's list of homes in your area and look for homes with similar features, such as square footage or lot size, that have lower assessments. Next, check for homes with similar assessments that are bigger or have more land.
Although new homeowners can't do much to argue market value (since it's usually established by the purchase price), they should look at their property card to make sure it contains the right information for future assessments.
Get your property card. The first thing to do is to ask your assessor's office to see your property card. The property card shows all the information on your home and land. Ensure its accuracy since the lot size, house square footage, number of rooms, bedrooms and bathrooms enter into the assessment. Make sure the card doesn't describe more house or land than you own. If the property card is incorrect, you may get your assessment changed without a formal appeal. Check for an error in the tax rate for your home as well. Jurisdictions often have different tax rates for homes with rentable spaces, homes zoned for commercial use, homes in a historic district, or other provisions. Be sure your property is being charged the correct tax rate.
Check the market value. If your property card checks out correctly, check on your home's market value. Assessed values are based on a percentage of market value which may be listed on your assessment or supplied by your tax assessor's office. If you have had a recent home appraisal to refinance your home or to get a home equity line of credit, you may be able to use it as evidence of market value. It may also help to search online for sites that show what homes in your neighborhood sell for. You may have a good case for reducing your assessment if you find similar homes at lower values.
Compare your assessment. Check your assessor's list of homes in your area and look for homes with similar features, such as square footage or lot size, that have lower assessments. Next, check for homes with similar assessments that are bigger or have more land.
Although new homeowners can't do much to argue market value (since it's usually established by the purchase price), they should look at their property card to make sure it contains the right information for future assessments.
Procedure For Property Tax Assessment
One of the reasons that my husband and I do not own our own home yet is because of property tax. Though we live in a really great area that has some of the best schools in our state, the rate of tax is much higher than almost anywhere in the country. We do not live in an urban area, so this is somewhat of a mystery. We aren’t sure why it is, but people here are paying more tax on their property than they should be. Perhaps that is why we have such good schools, I really don’t know, but I do know that is why we don’t own just yet.
Many people don’t consider property tax when they decide they can afford to buy their own home. They may think they can get a mortgage that is equivalent to what they pay in rent. That might very well be true, but you can not forget about property tax when you are deciding if you can afford the mortgage or not. There are many hidden things that come with home ownership, and that is just one. You are also going to have to make your own repairs, and you are going to buy your own appliances. These are things most landlords take care of when you rent from them. When you buy a house, those things fall on you.
You might want to find out what your property tax might be before you buy something. Though this is a smart move, some don’t do it, and they are shocked when they get their first tax bill. This can ruin the dream of home ownership for many. If yours are high like mine are, you may not be able to get the house you think you can afford. You may have to go with something smaller so you can have a smaller monthly house payment. That might be the only way you can afford your property tax.
If you can’t pay your property tax, you should know that you could very easily lose your house this way. If you are having problems paying it, you have to talk to your bank. They may be able to extend you more of a loan to cover it, but don’t expect them to do that more than once or twice. Only do that if you have an emergency, and remember that it’s not free money, you still have to pay it back. In many cases, the bank won’t help you with that, and you will be on your own.
Many people don’t consider property tax when they decide they can afford to buy their own home. They may think they can get a mortgage that is equivalent to what they pay in rent. That might very well be true, but you can not forget about property tax when you are deciding if you can afford the mortgage or not. There are many hidden things that come with home ownership, and that is just one. You are also going to have to make your own repairs, and you are going to buy your own appliances. These are things most landlords take care of when you rent from them. When you buy a house, those things fall on you.
You might want to find out what your property tax might be before you buy something. Though this is a smart move, some don’t do it, and they are shocked when they get their first tax bill. This can ruin the dream of home ownership for many. If yours are high like mine are, you may not be able to get the house you think you can afford. You may have to go with something smaller so you can have a smaller monthly house payment. That might be the only way you can afford your property tax.
If you can’t pay your property tax, you should know that you could very easily lose your house this way. If you are having problems paying it, you have to talk to your bank. They may be able to extend you more of a loan to cover it, but don’t expect them to do that more than once or twice. Only do that if you have an emergency, and remember that it’s not free money, you still have to pay it back. In many cases, the bank won’t help you with that, and you will be on your own.
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