As a homeowner in our NJ suburban towns, the costs of owning and maintaining your home are significant. A major factor in the cost of home ownership in NJ is the real estate tax. Because excellent public schools, safe streets and recreational opportunities are costly, real estate taxes typically increase annually. Until now, if you itemized on your federal tax return, you were able to deduct the full amount of state and local taxes (SALT), so there was the chance to recapture some of those costs by reducing your taxable income.
Effective in 2018, the recently enacted Tax Cuts and Jobs Act introduced a limit of $10,000 to the SALT deduction. Depending on your personal situation, most homeowners will not be able to deduct the full amount of real estate taxes on your federal tax return. In many cases, real estate taxes alone exceed $10,000. In short, the new law has substantially reduced the value of deductibility of real estate taxes.
Now, cost and deductibility are both significant reasons to reduce the real estate taxes you pay. Your real estate taxes may be worth appealing, because:
- Many towns have deferred doing revaluations (the cost is prohibitive).
- Prices for homes purchased in the 2004-2007 period in some cases have not fully recovered, but assessments have not reflected the market drop unless there was a revaluation (infrequent).
- Sometimes mistakes are made on individual reassessments.
We can provide you with a market price analysis of your home and an evaluation that will show you if pursuing a tax appeal is worth it. We are very experienced Realtors with Berkshire Hathaway Home Services NJ Properties with an intimate knowledge of the local markets of New Providence, Berkeley Heights, Long Hill, Mountainside, Chatham and Summit. We are offering this service at no charge, but as a service to the local community.
If you're interested, you will need to contact us soon, as the deadline for filing an appeal is April 1, 2018. Steve Polychronopoulos can be reached at 908-507-7151 or via email at firstname.lastname@example.org. Michele DiBenedetto can be reached at 908-432-5603 or via email at email@example.com.