‘Tis the season for Tax Housekeeping
Three Reminders for Home Buyers in 2022
If you purchased a home in 2022, take note of these three important tax items to take care of before the new year.
1.Homestead your property
If you bought a primary dwelling home this year, be sure to homestead it! Homesteading provides important tax benefits on your primary residence. In Minnesota, you need to apply to your county assessor before December 31 in order to qualify for the next year’s taxes. Visit your specific county website for more information. Find more information about Homesteading at the MN Department of Revenue website.
2. secure & Store your mortgage docs
You may need your mortgage documents & closing statement to prepare your income taxes for 2022 - double check that they are in a safe and accessible place. If you cannot locate these documents, connect with your Realtor® and request copies. Also, keep an eye out for your 1098 mortgage interest statement from your lender, which should arrive at the beginning of the year. If you do not receive it, set up an online account with your lender in order to download it directly.
3. check your proposed 2023 taxes
By now you have received your proposed taxes for 2023. If you do not agree with the assessed value, you can appeal. Instructions on how to do this are printed in all of your proposed tax statements. If, during the process, you need a broker price opinion, contact your Realtor®. We provide this to our clients for free. An important note about assessed values… 10-15 years ago, assessed values were typically much less than an actual market value. That’s all changed now and counties are assessing homes much closer to actual market prices. We are actually seeing more cases of homes being assessed far above a market value, so we encourage you to pay attention to the numbers. If you own a condo, remember you need to include the value of your parking stall(s) in your calculation if the stalls have separate PIDs.
Considering buying or selling before the New Year? Considering buying or selling in 2023? Either way - meet with one of our agents today and get started!