Homeownership is a beautiful thing—until we have to pay our taxes. Thankfully, there are ways to cut back on those tax payments. In Georgia, there are five property tax deductions you should know in case any of them suits your status and can help lower your tax bill. Every little bit helps, and checking out possible deductions is worth the time.
Homestead Exemption
Every Georgia resident whose home is owner-occupied as a primary residence may receive $2000 as a tax exemption from county and school taxes. The homestead exemption is standard and is calculated by deducting the $2000 from 40 percent of the assessed property value.
Line of Duty Exemption
It’s important to honor those who serve and protect. If you were married to a police officer or firefighter who died serving, you are exempt from all property taxes in the state of Georgia as long as you haven’t remarried.
Senior Citizen Exemption
In Georgia, if you are over 62 years of age and your annual income is less than $10,000, then you may be exempt from school taxes (up to $10,000 of your home’s value). At the same age, if your income isn’t over $30,000, part of your home’s value may be exempt from county taxes also.
Veteran Exemption
The state of Georgia takes good care of its veterans with the veteran exemption laws. As a disabled veteran or the widow of a disabled veteran who has passed, or if you’re the widow of a veteran who died in battle, Georgia provides substantial property tax exemptions. You must meet several criteria to qualify for the exemption, but even so, it’s worth applying for the chance to save on your taxes through Georgia’s effort to honor your loved one.
Rental Property Deduction
As a rental property owner, if your expenses for the property exceed your income from the property, you may deduct that loss from your taxable income. If your income (non-property) is under $150,000, you can deduct up to $12,500. If your non-property income is under $100,000, you may be able to deduct up to $25,000 of your rental property losses.
Property taxes are used to help improve the community. It’s helpful to remember the why as we pay them. Still, it does become costly, so it’s also helpful to understand Georgia’s five property tax deductions.
At Excalibur Homes, we understand all things real estate and real estate investment, which is why we were voted “Best in Georgia.” Contact us if you’re looking for metro Atlanta property management or full-service property management in any surrounding area.
