Downey CA property taxes and how it affects home owners

“Every action has an equal and opposite reaction”

So says Newtons 3^rd law of physics. We typically don’t really think about physics all that much when we talk about real estate, but if you live in an area that has seen substantial home appreciation in the last few years you may be experiencing this first hand.  Property taxes have been a hot topic for many home owners as some areas have seen increases of 15% or more just over the last year alone.

These increases are highly correlated to the rising home prices in these areas and maybe some new home buyers have built it into their offer, but what about the people that already live in these neighborhoods? Add that to the fact that with the new tax plan you will only be able to deduct up to $10,000 on your taxes and some current homeowners may be in for a true “opposite reaction”

If you are one of the many people sitting in this position don’t just take it lying down. There may be some things you can do. First, do you have a home office?  If you do, discuss with your accountant how you may be able to write off the office within your home. Second, is there an option in your home to rent out a granny flat or extra bedroom? Many homeowners have turned into a part time landlord to help with the increased expenses. As a landlord you may be able to become a pass through entity and qualify for up to a 20% deduction for qualified business income. Finally, fight back. If you disagree with your assessment the municipality has made on your home find out how to file an appeal, and be prepared to gather some evidence to support your claim.