Long Islanders stand to lose a lot of tax breaks in 2018, including the ability to deduct property taxes paid. How can homeowners offset these new higher living costs?
Tax Free Real Estate Investment
Retirement accounts are reportedly the one area of tax savings and protection that may go untouched in the massive tax changes coming by the new year. By using self-directed IRAs and 401ks, individuals can invest in real estate with tax deferring benefits. Roth IRAs even provide tax free gains.
Mortgage interest rates are still relatively low. With the looming loss of the mortgage interest deduction, Long Island homeowners should be even more motivated to refinance to lower fixed rate loans. This is especially true if you have an adjustable rate home loan or line of credit. For the first time in a long time, it may actually now make more sense to put more of your cash and savings towards paying off your home than to have a loan in place.
Sell & Downsize
Given the changing real estate market, and current rates, it may be the time to sell that home and restructure. Maybe it is a good time to buy something smaller to live in, choose to rent locally and buy that retirement condo by the beach, and if you have cash left over consider gifting to charity and your heirs early. You may even be able to lease back your home for as long as you need to use it.
Appeal Your Property Taxes
There has never been more urgency to appeal and lower your property taxes. If you can’t deduct them on your income taxes, you need to get them as low as possible. At least half of all Long Island property owners should be eligible for a tax reduction or rebate this year. Don’t miss out on this.
There may only be a few weeks left for Long Islanders to restructure their finances and real estate in order to avoid much bigger tax bills in 2018. Above are some of the basic moves everyone should be working on. For help with your property taxes in Nassau or Suffolk County, make sure you get in touch with Property Tax Adjusters, Ltd.