If you’re about to purchase a house or condominium for the first time, you may be wondering what you can expect when it comes to taxes. After all, owning a piece of real estate can be a very liberating experience—one that can serve as the foundation of building personal wealth, equity, and as a place to raise your family for years to come. However, taxes can quickly become problematic for those who don’t know what they will be required to pay. With the help of a CT Real Estate lawyer, you can be advised on what’s to come and how to save money in the long-run. In this article, we’ll take a look at how property taxes work and how to anticipate for them when you purchase your new home.
Local governments assess property taxes as a method for compensating for fire-fighting services, police officers, maintenance of public roads and other municipal costs that come with running a particular city or town. The property that your home or condo sits on is within an area known as the “assessment area”.
Therefore, when the local government determines what your local tax rate/levy will be, they’ll assess your home/condo based on the market value of similar homes within the area. By multiplying your tax rate by the assessed value of your home, you can determine how much you’ll owe in property tax each year.
Once you’ve closed on your new home, you’ll be responsible to pay property taxes. If you need help in determining what those costs will be, consider contacting a Connecticut Real Estate Attorney that can accurately give you a picture of your property tax responsibility. For most counties and cities, you will be required to pay pro-rated property taxes, which covers the period from the date you purchase the home until the remaining days of the year. Afterwards, your property taxes will be levied at your full assessed rate.
It’s important to also account for other taxes in your finances. By consulting a CT Real Estate lawyer or other financial professional, you can discover whether or not you can write off property taxes from your income taxes (or your spouses) in order to save additional money. As we mentioned in the introduction, homeowners benefit in many ways by owning a piece of property, so it is important to leverage your financial knowledge from the get-go.
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While it is sometimes joked that you can’t escape death and taxes, every potential homeowner should know that there are many ways to anticipate and account for taxes each year. Therefore, by having a team of professionals at your side can make a significant difference in your overall tax picture. Consider contacting a Connecticut Real Estate Attorney today to learn more about property taxes and setting up a bright future for you and your family.