Tired of New York’s outrageous taxes? How can you legally avoid paying so much?
There are a variety of creative ways to reduce your exposure to a variety of taxes in NY. As well as one simple thing you can do each year to dramatically reduce your property taxes in NY.
Let’s take a look at some of these options…
- Live Abroad For Six Months
Instead of heading to Florida in the colder months, why not head overseas? The Turks & Caicos Islands, the Dominican Republic, and plenty of other options offer great weather, without having to travel too far.
If you can rearrange your income to come from offshore, and live out of the country for at least six months of the year, you could be exempt from federal income taxes.
- Switch Your Property To Nonprofit Use
Not-for-profit organizations can enjoy a wide variety of tax exemptions, including property taxes and state sales and income taxes.
This would require setting up a nonprofit, acquiring the property under this entity and applying for these exemptions.
- Reduce The Taxable Value Of Your Home
While this may be extreme, it may be the right move for some property owners in some select situations. The number of bedrooms, bathrooms, garage spaces and other features of your property can all add to your property tax assessment. Yet, if you get to a stage in life when you really don’t want or use these features any more, then you may benefit by downsizing them.
You could potentially combine bedrooms to make one grander and more spacious suite, remove a garage if you now take uber or public transport instead of owning your own vehicle. Or fill in a swimming pool if you just don’t use it and don’t want to pay to maintain it any more.
- Roth IRAs
A Roth IRA means your investment returns are tax free forever. There are many options for self-directed IRAs and 401ks which you can use to invest in and own real estate in NY, and either claim extra income tax deductions now and enjoy deferred taxes on returns, or choose no taxes later.
- Leaseback Your Property Instead Of Owning
Owning property can be a lot more work, expense and frustration than they make it out to be in the brochure.
You could sell your property and lease it back on a fixed monthly payment. Then let the actual owner deal with all the maintenance, rising property taxes and other issues.
Or Just Appeal
Chances are your annual property tax bills in NY are incorrect and overblown. You should be appealing and getting these corrected anyway. It has saved others thousands each year. All without having to get too creative.