Property Taxes & Real Estate Related Income Tax Deductions

Property tax season is upon us, and assessments were mailed out. Seventy five percent of Arlington residents saw a drop, but remember that assessments are a lagging indicator.  A lower assessment doesn’t necessarily mean a lower tax bill though…rates are due to increase (read my post about how property taxes are calculated here.)  If you live in DC, check your tax bill to make sure you received the homestead exemption – DC often mistakenly omits this important exemption from owner occupied units!  If you think your assessment is too high, next month I’ll have some links on challenging your property tax assessment.  If you’re in need of some market data to support your case, please contact us!

Income tax season is also here, so homeowners get ready to claim all your deductions. If you bought a house in 2009, remember to provide your HUD-1 to your tax advisor (and a note for my clients…I’ll be emailing you a copy of yours in the next few weeks so that you don’t have to go digging for it.)  If you’re claiming the first time buyer credit, be aware that as of right now you can’t e-file, and there could be delays with your refund (read details here). Here’s the form to claim your $8000.
Remember, even if you don’t qualify for the federal first time home buyer credit of $8000, be sure to ask your tax advisor whether you qualify for DC’s $5000 tax credit because the rules are different for each.

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