Procedure Of Paying Real Estate Property Tax

Procedure of paying Real estate property tax

There are ways to avoid, reduce or delay taxes, even if only for a brief period of time. We will now discuss real estate tax schemes.

PROPERTY TAXES

Property taxes are calculated on the appraisal value assigned by local governments. 

PROPERTY TAX REDUCTION

Tax reduction provides a steep decline in investor taxes on new developments built between 2005 and 2008. It works as follows: Every two years property taxes increase 20% on the normal tax rate until the 11th year, when the tax acquires the normal rate.

During the first two years of the reduction, the property tax will be a nominal amount. Then it keeps increasing for every two years.

So if you buy an apartment in a building with tax reduction in the first year and sell it in the sixth, the new owner will have another four years of reduced tax.

--Shailaja K