Financing in 07302>Question Details

Lpaige, Home Buyer in 10027

Are property taxes deductible? Do I have to wait until tax time?

Asked by Lpaige, 10027 Wed Jun 2, 2010

In order to have more disposable income monthly? Even with an abatement, NJ taxes are so high I may as well buy in the city.

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Hello LPaige,

If you expect to be due a tax refund considering all your deductions including real estate tax, then yes you should change your withholding now so you can take home more money from your paycheck. Check with your tax advisor since I always do a tax projection during the year to see how I will come out when I file my taxes next year.

Sincerely,

Carrie Roberts
Michael Saunders & Company
5100 Ocean Blvd
Sarasota, Fl 34242
941.539.3407
0 votes Thank Flag Link Thu Jun 10, 2010
Yes they are. Be sure to add the pro-rata taxes that show up on your settlement sheet. They are normally NOT included in the mortgage company's reporting at year end.


Good Luck!

Gerry Dunn

Associate Broker
Maryland, D.C. and Virginia

gerry@MyPotomac.com
0 votes Thank Flag Link Thu Jun 3, 2010
Hello Lpaige, you should certainly speak with your accountant, but yes property taxes are deductible as is the interest paid on your mortgage. Maintenance fees are not tax deductible.
While you could pay less taxes in New York, you could very well pay about double in price per square foot if not more.

In Hoboken for example you can purchase a 1200 square foot two bedroom two bath condominium, in an elevator building with private terrace and one parking space for around $535,000. That same property in the city can cost you upwards of $900,000 plus high maintenance fees. Something to consider.

The other large separation between NYC and NJ real estate aside from prices, is the arguement of condominiums vs coops, a large portion of NYC buildings are co-op property and ownership varies because of this.

I hope this answer was helpful.

Best,
Karina Anillo
RE/MAX Gold Coast Realty
Sales Associate
P(201) 795-5200 xt 332
0 votes Thank Flag Link Thu Jun 3, 2010
Lpaige,

The answer Andres provided is correct. In NJ, property taxes can vary considerably from town to town. If you will continue to work in the City, commute times will factor into your choices. If you will not need to commute to the City, you will have more options to consider towns with lower taxes. Lower remains a subjective term, relative to the other locations.

Deb
0 votes Thank Flag Link Thu Jun 3, 2010
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
Lpaige

This is a question for your account but in general Property Taxes are deductible. If you are subject to the Alternative Minimum Tax, or have an exceptionally high income, you may not be able to deduct your taxes, or all them, but in general property taxes are deductible from your federal income taxes.

If you have any additional questions please do not hesitate to contact me.

Andres Garcia
Sales Associate, CDPE
RE/MAX Gold Coast Realty
56 Newark Street
Hoboken, NJ 07030
Direct: 201 795-5200 x340
Andres@MileSquareRealty.com
http://www.MileSquareRealty.com
0 votes Thank Flag Link Wed Jun 2, 2010
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