What types of property are subject to tax?
What types of property are subject to tax?
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How is property classified?
Property is classified according to how it is used. For example, a state may have multiple classes of property, all of which are taxable.
→ Read MoreWhat options do I have if I can’t afford to pay what I owe in property taxes?
If you cannot pay your property taxes in full, you may have a few options available to you. In most cases, the regulations regarding your payment options for your property taxes depend on the local government in your area. Property taxes are set by your local government, and the local municipality controls the amount of interest or late fees that may be charged to you if you fail to pay on time.
→ Read MoreHow can taxes go up when property values don’t?
Sometimes property tax rates can go up, even if property value does not. The likelihood of rising property tax rates combined with falling or steady home values can vary depending on what state you live in. Some state legislatures have the power to allow a rise in property tax even when home values decline. In many other states, mathematical formulas are used to decide the relationship between property tax rates and home values.
→ Read MoreMust I allow assessors to enter my home? And if so, what do they look for?
In most states, home owners can refuse to let assessors enter their property. There are even cases where homeowners call the police, and the assessors are arrested for trespassing. Many of these cases result in the prosecutor not pursuing any charges against the trespassing assessor, who is usually (but not always) a government official.
→ Read MoreHow is the basis of property determined for income tax purposes?
The basis is any property is the cost of the property plus any additions or improvements paid for over the life of the property. There are exceptions to this general rule. Property that is inherited receives a stepped up basis or a stepped down basis to the fair market value of the property as of the date of the decendent’s death. Property that is gifted to someone carries the same basis as that of the donor of the gift, unless the fair market value is lower than the donor’s basis, and in that instance the basis is stepped down to the fair market value.
→ Read MoreHow often can I get audited? If my business gets audited, can the IRS audit my personal return?
There is no limit on how many times a taxpayer can be audited by the IRS. Typically, the IRS will initiate a second audit if they discover discrepancies during the first audit that gives them reason to believe that additional tax returns for other years may also contain inaccurate declarations of income or improper deductions. If you are a business owner and your business tax return gets audited, it is a strong possibility that the IRS could issue an audit notice for your personal return.
→ Read MoreWhy did my insurance company appraise my home at a value lower than market value?
The main reason that an insurance company appraisal and independent home appraisal based on market value differ is because they look at two different things. The insurance company appraiser is focusing on assessing the replacement value of your home, and only your home or garage. If you have your home appraised to determine market value, then the appraisal is based on both the worth of the home and the land.
→ Read MoreFederal Law Provides Tax Relief for Foreclosure Sales
If you have been forced to sell your home in foreclosure to satisfy a mortgage debt, you may receive a tax bill. Find out why the IRS can tax a foreclosure sale, and see how you can get relief from payment.
→ Read MoreWhat can I do to lessen my chances of being audited?
The IRS typically looks for discrepancies in the following: Schedule A (itemized deductions, Schedule C (profit or loss from a business) and Schedule F (profit or loss from a farm).
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