Value Added Accounting Can Help Your Clients With Their Property Tax Expenses

Go the Extra Mile!

As an accountant, your clients trust you to provide great service and give reliable and insightful tax advice. I’ve got something for you to consider that will add more value to your services and make your clients love you more than they already do.

While reviewing your client's Schedule E, Form 8825 or looking over an income and expense statement take a moment and look at the assessor’s valuation of the real estate. What do you think of the valuation? Is the value too high?

More Work?

The higher the county has valued your client’s real estate the higher your client's property tax bill. The concept is pretty straight forward. It doesn’t take you conquering 73,000 pages of the IRS tax code to get the concept.

How do you know a value is high? Use you professional acumen. Do you think the property could sell for that amount? Do you see consistent loses on the property? Did your client just purchase real estate for less than the county’s value? Did you client just buy the real estate? Did your client just refinance their mortgage loan? Heck, what does your gut tell you?

You don't have to have all the answers, you just need to start a conversation.

Be a Hero!

If you think your client’s real estate might be overvalued (i.e., over taxed), then let your client know. If you’re right, your client can challenge the county’s valuation. If they succeed and the property tax burden is reduced, then you just put money in your client’s pocket. Well, maybe it’s not that exactly that easy.

Each state that does assess property taxes also has a procedure in place to challenge the valuation. But, hey, you can take credit for getting the ball rolling.

Now, set aside that 1040 you’re working on and pat yourself on the back.

Email me or send me a LinkedIn message if you have any questions about your income producing real estate or if you have any questions as to whether your property is fairly valued.

Follow me at twitter @OhioTaxNowak for real estate news and property tax related information.

Disclaimer: The contents of this LinkedIn article are intended to convey general information only and not to provide legal advice or opinions. The contents of this article, and the posting and viewing of the information on LinkedIn should not be construed as, and should not be relied upon for, legal or tax advice in any particular circumstance or fact situation. This LinkedIn article is intended to inform the general public of its legal rights. No formal legal action should be taken in reliance on the information contained in this LinkedIn article and I disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this LinkedIn article to the fullest extent permitted by law. An attorney should be contacted for advice on specific property or specific property tax appeal.