How to Save Money on Property Taxes with Home Improvement Projects
Have you considered giving your house a much-needed makeover but are hesitant because you're uncertain how that will affect your property taxes? Here's the thing: while, yes, property taxes are daunting and a significant expense for homeowners, there are many upgrades you can do to your humble abode that won't actually put too much of a strain on your wallet!
Here are some tips on how to save money on property taxes with home improvement projects.
1. Check Your Local Tax Laws
The first step is to check your local tax laws. Certain improvements could increase property taxes instead of reducing them. It's essential to do some research or consult a professional to know if there are any rules specific to your area.
2. Plan Your Improvements Wisely
When planning home improvements, focus on projects that increase your house's value. Cosmetic changes, such as repainting rooms, do not significantly affect your property taxes. On the other hand, replacing outdated plumbing or electrical systems, upgrading your roof, or adding a deck to your home improves its value and decreases your property taxes.
3. Keep Records of All Improvements
Keep records of all home improvements and upgrades, including materials and labor costs. These documents will help you claim deductions when you file your taxes. Moreover, some states require homeowners to submit these records with their property tax assessment.
4. Apply for Property Tax Exemptions
Property tax exemptions vary from state to state. Some states offer exemptions for energy-efficient upgrades such as solar panels, wind turbines, or low-impact windows. Others provide exemptions for homes belonging to veterans, senior citizens, or disabled individuals. Research your state's property tax exemption programs to know if you qualify.
5. Appeal Your Property Tax Assessment
Your property tax amount is based on the assessed value of your residence. However, if you believe that your home's appraised value is too high, filing an appeal could get your property taxes lowered. Get in touch with our team to get started!
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