Long Island property owners are white knuckling the hurtling ride toward new tax changes, which could cost them their property tax deduction.
Sweeping tax changes are in the works. Perhaps the most substantial and wide spread number of tax rule changes we’ve seen in over a century. Almost all are bracing themselves for the potential to receive far larger tax bills ahead.
Of these changes, the most controversial may be the elimination of the property tax deduction. If this passes you’d no longer be able to deduct it on your annual income taxes. That could be a devastating blow to many homeowners and hopeful home buyers, as well as real estate professionals and businesses.
That is just the tip of the iceberg. The mortgage interest deduction (MID) is also on the chopping block. That would be a double whammy, stripping away two of the best benefits of owning property, versus renting. At best, Long Islanders may have to choose between taking the MID or property tax deduction each year. That is not going to be a fun choice. Given how much many are paying in interest on mortgages in NY, many may simply have to sacrifice the property tax deduction altogether.
Then there is the push to repeal state and local tax deductions. Meaning that you’d be paying double tax on your income, and tax on income that you didn’t get, because it already went to another taxing authority.
While some may see a net benefit, if overall tax rates are reduced dramatically, and standard deductions are at least doubled, the biggest problem is the complication. These new tax proposals may aim to simplify things. Yet, they are going to cause a lot of confusion in the process. The tax man’s best tool in reeling in more cash, is like the NY property tax system; it’s so broken and complicated people lose out, because they don’t fully understand it, or fail to claim breaks owed to them.
The bottom line right now is that for Long Island home owners it is vital more than ever to get your property tax bill and assessment lowered, in case you can’t deduct, or have to sacrifice it for another deduction.
Get help from Property Tax Adjusters, Ltd., today to find out how low your property taxes could, and should be…