Tax Reform Affects On Tax Abatements
For many years property owners have been able to utilize multiple deductions regarding their home ownership. For example property taxes, mortgage interest, and home repairs are all things that property owners can help reduce their tax liability on their tax returns. Unfortunately, the new tax reform that was passed by the government is set to dramatically affect tax payers in 2018 and in years to come.
Many property owners in the U.S. will be considerably affected by this new tax reform as the deduction for property taxes; which includes income and sales taxes is set to be capped at $10,000. In states where property owners pay all three of these taxes; they will be less likely to receive a substantial refund from the government. In addition to this there will also be a cap on mortgage deductions of $750,000; which would most likely affect real estate investors or large real estate firms providing housing around the country. It is too early to determine what the impact will be on all the different types of property owners; though one would think it will be most detrimental to the single family home owner.
There are ways to help combat such a strict tax reform affecting owners of real estate. This is to seek relief from the local taxing authority, by filing a tax abatement. Many property owners need to utilize this option to reduce their property tax liability; especially now since their potential deductions have been significantly reduced.
Allobar Strategies, a property tax consulting firm has ability to assist tax payers with issues with how to file a tax abatement and be successful in attaining a reduction. Property owners now more than ever need to keep this mind, and it will be interesting to see if tax abatement applications increase nationwide in the near future.