Charlotte Property Hunters - Find Your Dream Home in South Charlotte and Union County, North Carolina

With the current economic crisis, many counties are raising property taxes in an attempt to balance their fiscal budgets and reduce their deficits. According to a survey by the National Association of Counties, a group that represents county governments.property taxes, about 18% of counties whose fiscal year begins between January and June increased property taxes to address revenue shortfalls.. There are some ways you can your property tax bill, one being a property reassessment..

Typically the property taxes are calculated based on an official assessment of the home’s value. Because the value of most homes have dropped in the last few years, you can challenge what the value of your home is currently valued at and thus reduce your tax by hundreds of dollars. Even before you seek an assessment, it is a good idea to check your records to make sure there are no mistakes. Simple typos and incorrect information can cause homeowners to be.charged more than they should.

Whether you are planning to sell your home in the near future or are planning to stay for a few more years, it is worth trying to get a reassessment. Keep in mind that if you can reduce your taxes, you not only will save money on taxes, but it will be a great selling tool.

New legislation, which was signed into law by President Obama on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous acts. The current tax credit was set to expire on November 30th. Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. 

Current homeowners are also eligible for the new credit. Those who have owned and occupied a residence for at least five years out of the past eight can claim a $6,500 tax credit if they close on a purchase by the end of June. These tax credits are available for the purchase of principal homes costing $800,000 or less.

 According to the IRS, the new law:

• Extends deadlines for purchasing and closing on a home.
• Authorizes the credit for long-time homeowners buying a replacement principal residence.
• Raises the income limitations for homeowners claiming the credit.  Income limits have been expanded to $125,000 on a single return and $225,000 on a joint return. Previous limits were $75,000 (single) and $150,000 (married)

Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.