Are property taxes deductible?

Property taxes on all real estate, including those levied by the state of Colorado, city governments and school districts, are fully deductible against current income taxes.

How do property taxes work?

Property taxes are what homeowners pay for the privilege of owning a piece of real estate, on average roughly 1% of the property's current market value. These annual local assessments by county or local authorities help pay for public services and are calculated using a variety of formulas.

How is a home's value determined?

You have several ways to determine the value of a home.

An appraisal is a professional estimate of a property's market value, based on recent sales of comparable properties, location, square footage and construction quality. This service varies in cost depending on the price of the home. On average, an appraisal costs about $300 for a $250,000 house.

Contact me to perfom a comparative market analysis on your home.

Are taxes on second homes deductible?

Mortgage interest and property taxes are deductible on a second home, but only if you itemize your tax return. Check with your accountant or tax adviser for specifics.

What is an escrow account?

An escrow account is a trust account established by the lender to hold money to pay for real estate taxes, and homeowners insurance premiums as they are received each month. This is done opposed to paying taxes and insurance directly to the government or insurance provider.

Do all loans require escrow accounts?

If you are taking out a FHA or VA loan, the lender can require an escrow account to pay real estate taxes and hazard insurance premiums. With most conventional loans you will not be required to set up an escrow account, however, one can always op to set one up.