One of the most heated debates in the property tax world is the key differences between property taxes for multi-family and single-family properties during tax season.
Is one better than the other? Is there even a difference? These are both important questions that should be addressed before property tax season rolls around.
At The Hegwood Group, we don’t believe in leaving our clients in the dark when it comes to their property taxes for multi-family homes. Prepare for next property tax season by educating yourself. Find out the answers to the most common questions on this issue and take a look at some of the pros and cons for each property tax situation.
What’s the Difference Between Single and Multi-Family Homes?
The definition of a multi-family residence is based on a property that has separate housing units for separate families. Some examples include apartment complexes and properties that have separate homes built on them with their own entrances. Yes, aside from the physical differences there are differences between the two when it comes to property taxes.
In a single-family residence, they are not taxed under the same structure of a multi-family property. According to The National Multi Housing Council, apartment complexes and similar properties routinely pay more in property taxes each year. Of all expenses for multi-family properties, property taxes account for the highest paid expense each year. This is why so many people seek out business property tax consulting, in an effort to lower their property taxes.
Are there Similarities in Property Taxes for Multi-Family & Single Homes?
The main similarity between the two types of properties involves potential tax benefits each year. Regardless of the property size, there can be tax deductions involving mortgage and property tax. This means that even though taxes are generally higher for multi-family properties, there are ways that owners of these properties can reduce their expenses.
Pros and Cons
While one of the most glaring cons to most people may be that each year, property taxes are more expensive for multi-family properties, the doesn’t generally mean that all is bad. Even though there are higher tax rates in multi-family property taxes, these types of properties make paying your taxes simple.
Some single-family owners own multiple properties across the state or nation. Unless they are part of a multi-family complex, these owners are paying their property taxes on several separate tax bills. Multi-family properties provide owners with a single tax bill that takes the complexity out of what could be a very confusing tax process.
The Hegwood Group Works with Properties of Any Size
Dallas is home to many property owners that work with multi-family property taxes. We know that sometimes it can be confusing to go through property tax season as an owner of one of these properties. That is why you can rely on the Hegwood Group’s Dallas property tax consultants for help during tax season.
We are experienced, knowledgeable property tax consultants that offer services ranging from real estate tax to business and personal property tax consulting. Tax season is a time for your to take advantage of third-party knowledge and reap the tax deduction benefits. We take your taxes personal, so get in touch with the Hegwood Group today.