How can homeowners legally avoid skyrocketing real estate taxes?
Property taxes are soaring again. And any dip in the economy is going to make taxing authorities hungrier for revenues. Any continued rise in home values will cause them to ‘justify’ a raise in tax bills. This is an incredible burden on homeowners and business property owners.
Some are turning to illegal methods of tax evasion such as falsely claiming property tax exemptions. Tax fraud is a big risk, and carries severe penalties.
Others are taking extreme legal methods to avoid high property taxes. In Malibu, California this includes building and living in $5 million plus ‘mobile homes’. Imagine an oceanfront home with four plus bedrooms, two fireplaces, and a viewing deck overlooking the pacific. Now imagine your property tax bill is just $29 each year. They can do this because these homes are technically considered ‘vehicles’.
Others are jumping on the tiny house trend, and are squeezing themselves into spaces smaller than a New York City hotel room. Some existing homeowners may even be going as far as reducing their square footage or room counts to minimize tax liability. Instead of remodeling, updating, or enjoying what their homes could be, and their dream homes, they are letting them get run down, are leaving shutters on the windows, and are generally making them look less valuable than they could be.
Even though many international home buyers and investors are flocking to the US right now, some American real estate gurus are promoting overseas property in cheap tropical destinations, ahead of what they expect to be another market correction. Of course in reality these destinations are not always as profitable as investments as the US over the long run. It can also mean giving up being close to family, financial security, the security of property rights and legal protections for homeowners, and access to the best healthcare.
Some of these moves might be right for some people. Yet, many, many homeowners, especially those in high cost locations like Long Island, NY could be slashing their real estate tax bills by challenging incorrect assessments and having them adjusted. Services like Property Tax Adjusters, Ltd. can help with this, and enable you to enjoy your home to its full potential, without such and extreme property tax burden.