How Real Estate Taxes Can Affect Your Refund

April 19, 2019

Even if you have already finished your taxes for the year, there’s most certainly nothing wrong with getting a head start on next year’s taxes. Specifically, you may wonder how your real estate taxes impact your refund. While Los Angeles Tax Preparation services can most certainly answer your questions, here are a few items of note to get you started.

Itemize Your Tax Returns

If your mortgage comes with high yearly interest cost, you should look into itemizing your tax returns. By keeping a close eye on how much mortgage interest you pay, which you can do with the help of a Los Angeles Accounting specialist, you can save as much as possible on your taxes.

On a related note, you should also itemize your taxes if you pay high mortgage premiums. If possible, you can completely sidestep premiums on your home loan insurance by having equity of at least 20 percent in your current residential property.

Where You Live Matters

Something else that bears consideration when it comes to tax refunds and real estate taxes is where you live. If you live in the metro area of a more rural state, you’re more likely to pay less in real estate taxes. On the flipside, your real estate taxes are likely to be higher if you live in either an urban or more densely populated area. This doesn’t mean you need to move ASAP, just that this is something to keep in mind if you do plan on moving in the near future.

Look Into Prepaying Taxes

Even if your semiannual tax bill isn’t due until April, pay it early, if you can. That way, you can deduct that amount this year instead of next year.

To make the most of real estate taxes, turn to a professional. Look to Los Angeles Accounting experts for more tips throughout the year.