Discover the challenges of fighting property taxes and the potential for tax deductions

  • Property-tax bill spiked 40%
  • Successfully lowered taxes for next year
  • Expenses for fighting the bill may not be itemized
  • Limited federal income-tax deduction for property-tax costs
  • Exploring tax provisions to defray costs after disputing a tax bill
  • Most people view local property taxes as too high
  • Average property tax for a single-family home is $4,062
  • State and local tax deduction capped at $10,000
  • No provisions available for writing off expenses from fighting property taxes
  • Home-office deductions may apply for self-employed individuals

My property-tax bill spiked 40% post-pandemic, but I successfully worked with my real-estate agent and home inspector to lower my taxes for next year. However, the expenses incurred in fighting the bill may not be itemized for tax deductions. The federal income-tax deduction for property-tax costs is limited at $10,000 for itemizers. While there may not be direct tax write-offs for the costs of disputing a tax bill, there are potential ways to use tax provisions to defray costs. Many homeowners find local property taxes too high, with the average property tax for a single-family home being $4,062. The state and local tax deduction is capped at $10,000. Home-office deductions may apply for self-employed individuals who use their home as their principal place of business. It’s important to be proactive and understand state and local laws regarding property taxes, as there may be exemptions available based on age or other circumstances. However, the costs of a tax appeal that escalates into a court case are not recoverable. Deadlines and procedures for questioning property assessments vary, so it’s crucial to check locally for requirements.

Factuality Level: 2
Factuality Justification: The article provides relevant information about property taxes and potential deductions, but it contains a lot of unnecessary details, tangential information, and personal anecdotes that do not contribute to the main topic. It also includes some biased language and opinions presented as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about property taxes, deductions, and exemptions. It offers insights into the tax implications of challenging property tax assessments and provides some actionable advice for homeowners. However, there is some filler content, such as the mention of the author’s personal tax situation, which is not directly relevant to the main topic.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification:
Key People: Eric Fader (Special Counsel at law firm Duane Morris), Miklos Ringbauer (Founder of MiklosCPA in Los Angeles), David Wilkes (President and co-founder of the National Association of Property Tax Attorneys, Partner at Cullen and Dykman)

Reported publicly: www.marketwatch.com