Budgeting For Inflation In Your Property Taxes
One of the most important things every property owner must have at the top of their to-do list is focusing on budgeting for inflation. Including higher property taxes.
Inflation in taxes is coming. Quite likely at a historic, and record setting pace. Treasury Secretary Janet Yellen has warned of even more enormous economic impacts coming in 2022. The breathtaking inflation seen over the past two years may well have just been the appetizer.
Budget Or Go Broke
Those who aren’t planning ahead may well find that they are quickly bankrupted by ongoing inflation. Even more so if fears of a new recession or stagflation become a reality.
If you are caught unprepared you could lose everything. Many did in the last recession. Jobs, homes, retirement savings, vehicles, credit, and their families.
The best way to survive and thrive through this is to budget for it. Take a look at your finances. See where you need to shore them up. Where you can save and cut costs. As well as where there may be opportunities to make more money.
Budgeting For Increases In Your Property Taxes
One of the biggest risks for many is the increase in their property taxes. It is sadly one recurring expense that is often overlooked. With serious consequences.
If you fall late on your property taxes it only becomes more expensive and difficult to catch up. Eventually, if you can’t catch up, you will lose your home or business property. Or both.
Expect increases in your annual property taxes. Even more so now with higher assessments, rising costs of underlying public services, and a new exemption which is shifting $2B in property taxes on to owners of existing properties, in favor of those buying new construction.
One of the best ways you can push back and gain some financial slack here is to challenge and appeal your property taxes with the help of Property Tax Adjusters, Ltd.
Other Taxes Of All Types
It isn’t just annual property taxes which are going up either. New taxes are being created. Tax rates on sales taxes, income taxes, capital gains taxes, and more are being pushed. While tax breaks are also being stripped away for a compounding impact.
Not only does this mean being prepared for bigger business and personal income tax bills each year, but for the self-employed and business owners, preparing to send out larger checks to the IRS for estimated taxes each quarter. While individuals who have looked forward to tax refunds all year, may find they are not only delayed, but much smaller than before too.
Other Living Costs
It’s not just taxes that are going up either. Everything from gas to groceries, to insurance and healthcare, is going up. Look at how many of these costs have gone up 30-70% or more over the past year, and the year before that too. If Yellen and other analysts are right, we must budget for living expenses to go up by that much or more again by the end of the year.
Inflation only seems to be warming up. In addition to everyday living costs, that will show up in higher property tax bills too.
Now is the time to prepare and adjust financially, create a new budget, and be positioned to cover your essentials, like housing.