The ‘tax man’ is always eying houses to seize, especially as the U.S. real estate market heads upward and values rise. So how can homeowners defend their family residences?
Many U.S. homeowners are finding that their homes are at risk due to a variety of tax issues. For some, it is property taxes. Others have neglected to file their state or income taxes. So how can individuals better navigate these issues, and keep their homes?
Property Taxes
Many property owners sadly underestimate the threat associated with delinquent property taxes. Even if it is not escalating interest, small related fees that go unpaid can result in foreclosure and the auctioning off of a home. Ironically, while tax assessments and bills are rising again, many of them remain wildly overblown since the crisis.
If your tax assessment isn’t accurate, your property has received damage, or it has gone down in value, there is a good chance you are being grossly over billed. The good news is that assessed values and tax bills can be challenged in person, or with the help of an attorney or property tax adjustment specialist. Don’t neglect this if you bills are wrong. There is always a better use of this cash.
Tips for Avoiding Federal Income Tax Problems
It isn’t uncommon for individuals to be hit with incorrect bills from the IRS. If homeowners haven’t kept good records, they may lack the evidence to fight these issues. Keep great records of all income and expenses, even those that are supposed to be handled by other professionals and companies. Store them securely, store them in the cloud, and on multiple platforms with different passwords.
Even for those that don’t feel they can afford tax preparation services, this isn’t an area you can afford to skimp on. Get a good accountant and don’t get taxes filed, but create a tax plan for the entire year. Make sure to take advantage of all available tax breaks and write-offs. How about IRA contributions, LLCs, and self-directed retirement plans? Other big breaks, like special credits, can be void if not filed promptly. Rarely does it make things better to not file your taxes on time. In fact, it can quickly get worse if you don’t.
Those that find it hard to come up with the lump sums they owe when tax time comes around might find it better to make estimated payments throughout the year. Those that want to get the most out of this money may save it in an interest bearing account or dedicated investment, which is hard to touch and spend frivolously.
Unfortunately, many individuals have found that they can unexpectedly have accounts seized by the IRS, while others are hit with levies and wage garnishments when they shouldn’t have been. While these types of seizures normally ought to apply to all incomes, there may be some benefit of maintaining multiple accounts and ensuring personal accounts are separate from business ones.
Tackling and Triumphing Over Tax Issues
Many U.S. home owners are already in the middle of the financial storm past due taxes can bring. It can be a big weight which causes a lot of frustration, career worries, financial havoc, and has left many homeless. Still; burying your head in the sand is virtually guaranteed to make things worse. On the bright side, there is hope.
Working with the IRS and other tax authorities is possible. In fact, these entities are so motivated to bring in funds right now, you may find they are far more pleasant and easy to work with than you ever imagined. A single phone call might get tax levies waived. Others might be able to settle for pennies on the dollar on past bills. You can be sure the IRS would rather have you paying something and getting back in the program than having to chase you down. Installment plans can be a great option too. Just keep in mind that they might not always do what you think. It can pay to have professional representation.
For a great number of individuals and families, the situation will come down to needing to make more money. Needing to make a lot more money, and fast. Working with the IRS or other tax entities individuals may help you avoid levies and tax liens. This preserves earning capability and credit; meaning individuals can still invest in real estate.
Read original article here: https://www.cthomesllc.com/2015/01/save-house-tax-man/