The IRS has slapped a ban on New York’s efforts to avoid new SALT tax limits. What can New Yorkers do to escape quickly escalating taxes now?
The Feds Kick New York’s Tax Hack to the Curb
New York was quick to respond to the new tax bill this year. After the bill capped deductions for State And Local Taxes (SALT), NY attempted to dodge the issue by making property taxes a charitable contribution. The IRS has now responded by banning this move and effectively nulling any benefit of these programs as of August 27th, 2018.
Escaping Sky High Taxes
There are three main ways left to get out from this burden:
Sell and move to a cheaper low tax state
Downsize and live in a small home with a lower tax bill
Challenge your property tax assessment with the help of a local property tax adjuster
Even though wealth New Yorkers are having a much harder time selling their homes due to new higher taxes according to the New York Post, and that is leading to many price cuts and fast falling home values, many are managing to pull it off. A long report from the New York Times reveals many New Yorkers who are heading south to Florida permanently in order to legally kicks tens of thousands of dollars in extra taxes each year to the curb.
Of course many New Yorkers can bear to drag themselves away no matter how expensive it gets. This is their home, their friends are still here and they still have family here. They may invest in real estate and vacation in other states, but they still want to live in Brooklyn, Long Island and Manhattan.
If you want to stay and are willing to downsize to make it work, here are several new listings from Realtor.com with lower tax bills. Though you must keep in mind those taxes can change at any time, and especially after a sale.
Estimated monthly property taxes: $619
Estimated monthly property taxes: $602
Estimated monthly property taxes: $456
Estimated monthly property taxes: $604
Estimated monthly property taxes: $354
Selling up, moving state, or seriously downsizing to a fixer upper, may not feasible or desirable for most. Though whether buying, trying to sell, or staying, getting your property tax bill down is very important. Get help now by contacting Property Tax Adjusters, Ltd.