The real estate market is filled with highs and lows that can be overwhelming at times. For many, these changes can create a sense of loss as they attempt to make ends meet. While dealing with taxes is never easy, there are steps to help you process and cope with the grief brought on by unpleasant tax news. Follow these 3 steps to heal your grief associated with real estate taxes and continue to focus on the bigger picture.
1. Understanding Your Real Estate Tax
es is an important part of being a property owner. It does not matter if you are an investor or an owner-occupant, understanding your taxes and keeping track of your tax expenses is a must.
The basic breakdown of real estate taxes is split between your local government and your school district. At a high level, governments use property taxes to fund public services and essential infrastructure such as educational programs, fire and police departments, roads and more.
- Local government tax: This is typically for basic services such as fire protection, roads and general governance.
- School district tax: This portion of the taxes funds the operation of the local schools.
In both cases, generally the larger the property and the higher the value of the property, the more taxes will be due.
2. Succumbing to Grief: Letting Go of Your Real Estate Tax
Real estate taxes can take a significant chunk out of your wallet when buying a new house or keeping the property up and running. But sometimes, no matter how much you fight, they can be too much for you to overcome. Rather than maintain a losing battle with your property taxes, it’s important to understand your options as a way to move forward.
One way to start is to enlist help from a tax advisor or lawyer who specializes in property tax management. Such advisors can provide a consultation to review your options and provide guidance on alternative tax strategies, if needed. Additionally, they can provide advice on how to apply for financial assistance programs available in your area. These resources can be invaluable to help lighten the load of your property tax moment.
- Talk to a local tax advisor or property tax lawyer to understand your options
- Take proactive steps to apply for financial assistance programs
- Understand all of the potential consequences of relinquishing your property tax
3. Finding Ways to Cope with Taxing Times
When tax season or any other difficult situation comes our way, it can be easy to give up and accept fear and stress as the only outcomes, but that is not necessarily true. There are productive and positive ways to cope with taxing times, and a few tips to keep in mind can make it easier and more manageable:
- Focus on the present moment. The past is gone and the future has not yet arrived. When trying to cope with uncertainty, it can be helpful to stay grounded in the present moment and try and take positive actions or take a break self-care.
- Respect the process. Working through a taxing situation is just that, a process. Give yourself credit for the steps you take and don’t let setbacks keep you from continuinng.
- Build supportive connections. It can be helpful to have supportive people throughout the process. If you don’t have anyone who understands what’s going on, lean on professionals like a therapist or coach who can provide an outside perspective.
Remember, the taxing situation will be over eventually and having strategies for how to manage it in the meantime will make it easier to deal with and cope with. Stop and take a breath before tackling it, and know that you are capable and it’s ok to reach out for help if you need it.
4. Striving for a Fairer Tax System
Having a fair and equitable taxation system in place is essential for creating a balanced, efficient economy and for ensuring that every citizen pays their fair share. There is, however, continued dispute around what constitutes a fair tax system and how it should be implemented. The following are a few primary considerations for creating a fairer taxation system.
- Tax rates: A key part of creating a fair tax system is introducing tax rates that are equitable to all citizens, taking into account their income, lifestyle, and class.
- Exemptions: The presence of exemptions in taxation is another important factor to consider in order to ensure that the taxation system is fair and not skewed towards certain classes. Exemptions can be applied to certain types of income earned, possessions, and other items.
Ensuring a fair taxation system can be an ongoing process as taxes are constantly reviewed and adjusted due to changing circumstances. This is why it is important for governments to take steps to ensure that taxation is fair for citizens by regularly examining the tax system and making necessary adjustments.
Grieving real estate taxes is never easy, but it doesn’t have to be an overwhelming process. With the three simple steps outlined in this article, you have the tools you need to navigate the process of lowering your tax bill. Ready to start? You have the power to make an impact, and get the most out of your tax return. Go forth and get started today!