Real estate tax is also known as property tax and is the tax that government imposes on a property. The property tax is said to be influenced by only one factor and that is the value of the property. The higher the property value, the more tax you will have to pay for it.

The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county/geographical region, or a municipality. Multiple jurisdictions may tax the same property.

There are four broad types of property: land, improvements to land (immovable man-made objects, such as buildings), personal property (movable man-made objects), and intangible property. Real property (also called real estate or realty) means the combination of land and improvements. Under a real estate taxation system, the government requires and/or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value. Forms of property tax used vary among countries and jurisdictions.

Many provinces in Canada levy property tax on real estate based upon the current use and value of the land. This is the major source of revenue for most municipal governments in Canada. While real estate taxation levels vary among municipalities in a province there is usually common property assessment or valuation criteria laid out in provincial legislation. There is a trend to use a market value standard for valuation purposes in most provinces with varying revaluation cycles. A number of provinces have established an annual reassessment cycle where market activity warrants while others have longer periods between valuation periods.

It is not easy to keep tabs of the tax laws that are in use in a country and add the fact that there are changes in tax laws every year, it is not an option for a person to know every tax law that will influence him. One can be aware of the major taxation laws that are important and not get into the intricate laws that exist.

Real estate taxation can be a tricky thing to do and it is better to get the help of a good tax consultant who specializes in property taxes to ensure that you do not end up paying more than you ought to.

There are also a number of professional financial planners, who specialize in creating and managing the estate plans of their clients. Such finance advisors, also known as estate planning expert, need to be hired, in order to take wise and informed decisions regarding planning. These experts can also raise the value of estates to the largest extent possible, by lowering the required tax rates and cutting down on related estate expenses.

Experts in taxation are available to help you in tax planning and to help you in saving money by making you pay less taxes. But finding a good expert can be tricky. Research and find out the best real estate tax experts available closer to you, check on their reputation and consumer reviews and then shortlist a few of them. Then talk to the shortlisted experts and identify if anyone has experience in handling your type of taxation and then look at the fee charged by the expert. Consider all the options and take you time to select a good estate planning expert for you.

To add a comment please login by clicking here