While purchasing and maintaining a Boston condo is complicated enough, homeowners also have to consider the way in which real estate in Downtown Boston can affect their taxes. Buyers gain a number of impressive tax benefits after the purchase of their Boston Midtown condo, however, they must additionally prepare for the added burden of yearly property taxes. Following are several important things to keep in mind as you get ready to deal with this side of ownership.

Property Taxes Are Determined by Multiple Factors

The value of your downtown condo will play the biggest role in determining this annual obligation. School districts, cities, townships, counties and other special districts can undergo changes in discretionary and non-discretionary spending, which can in turn alter the tax levy. These changes will impact your annual tax debt, irrespective of any constancy in your property’s value.

Special Assessments and Referendums

Special assessments for improvements pertaining to water lines, curbs, and other local infrastructure can also be factored into your tax bill. Additionally, there are some developments that are subject to referendums for government or school building projects that create significant property tax increases. Finally, state and federal mandates that require an increase in services provided at the city or county level can also affect your tax bill.

Personal Taxes

Each year, home ownership and the associated costs will open the door to a number of special tax deductions that limit your spending on personal taxes. This is especially true for the tax year in which you purchased a Downtown Boston condo for sale. For instance, during this year, you can claim the points or origination fees on your loan, irrespective of whether these fees were paid by you or the person selling the property.

Mortgage Loan Interest

Interest on mortgage payments can be deducted from your personal tax obligations for every year of ownership. During the early years of ownership, the majority of your house payments will be allocated for mortgage loan interest, rather than being placed towards the principal balance. Thus, this deduction will be largest early on and will gradually decline as equity is accrued and the balance on your loan goes down. Most homeowners are able to deduct the full amount of their mortgage interest payments, up to $1 million.

Renovations

The impact that renovations have on property taxes can vary from city to city and county to county. It is important to note, however, that as value is added to your property, taxes will likely go up.

Deductions for Renovations and Remodeling Projects

There are, however, tax perks when renovating or remodeling. Make sure to save all receipts for labor and materials. These can be used at the time of a property sale to limit the likelihood of your incurring capital tax gains. More importantly, if your remodeling projects increase the energy-efficiency of your condo or loft, check out the websites for the city, county, and state to see whether any financial incentives or tax credits are available.

Thinking of purchasing a luxury penthouse, loft, or condo in the Boston Midtown? We can help. Reach out today and let us help you find the place of your dreams. Call 617-720-5454.

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Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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