Reducing Your Property Taxes Becomes More Critical As Government Eyes Retirement Accounts

Blog June 24, 2021 By Admin

The government is eyeing tackling one of the most powerful tax breaks Americans have been using for investing and retirement savings. It makes hustling to reduce your tax exposure even more urgent, and lowering your property taxes can be one of the best places to start.


2021: The Year Of Taxes

This year’s headlines have been full of news of more tax proposals and tax hikes. As we’ve warned, this is probably just the beginning of a four year taxation spree.

At the same time, the current administration seems set on escalating the pace of inflation, meaning the money you do make and save is worth a lot less, and you will get to keep a lot less of it.

Landlords are expected to be among the worst hit between capital gains tax increases, property tax increases, caps on rents and now a brand new eviction ban ordered to begin in June 2021.


Retirement Accounts Under Attack

If you thought your money, investments and retirement were safer in a retirement savings account, that could soon be coming to an end too.

One of the most popular types of retirement savings plans, the Roth IRA is coming under new attacks, with politicians on both sides reportedly wanting to do something about all of the taxes they have allowed savers to save.

It is a huge pool of money the government would love to tap to fuel the economy and spending, and to force more dependency on government.

The complaint is that those using Roth IRAs to legally enjoy lower taxes, by choosing to pay taxes upfront on their savings, instead of deferring them with a traditional IRA, are simply saving too much and have too much money.

If you’ve spent years sacrificing to save for retirement this could soon be a big problem.


Decrease Your Taxes Now

It is time to get ahead of all of the new taxes, tax hikes, and stripping away of traditional tax breaks. This year some may be able to find new tax deductions on income taxes due to working from home and extra health and medical expenses related to COVID, such as spending on face masks.

However, one of the most important, meaningful and easiest places for those who own homes to start is by challenging their property tax bills, and locking in new lower assessments now. Be sure it is on top of your to-do list.