YOUR MONEY
CREDIT, COLLEGE, TAXES AND REAL ESTATE
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The rural county where I live has just reassessed real estate values, and my home's assessment more than tripled, as did most others in the county. The assessed value is now more than my most recent property appraisal. Should I appeal? What information would I have to present? -- Tim Taglauer, via e-mail
Go for it. As many as 60% of homes are assessed for too much, estimates Pete Sepp, of the National Taxpayers Union, and about 33% of property-tax appeals succeed.
Procedures vary, but you generally have 30 to 60 days after receiving an assessment notice to file an appeal. Ask the assessor's office for a copy of your property card, which documents the information on which the assessment was based. If the card lists the wrong number of rooms or square footage, for example, you may be able to get your assessment changed without a formal appeal.
If the information is accurate, go to Zillow.com to see how your home's assessment stacks up against others in your neighborhood. If you find that similar homes are assessed at a lower value, you may have a strong case.
If you spot big discrepancies, check your local assessor's office's records for more details on homes with similar features and lower assessments. Or find comparable assessments and explain why your home's value should be lower, says Sepp, whose organization publishes the helpful brochure How to Fight Property Taxes ($6.95; www.ntu.org). Some jurisdictions also allow you to submit as evidence market-value information, such as your recent appraisal.
No tax on this wedding gift
Recently, I gave my son and daughter-in-law a cash gift of $9,000 for their wedding. Does this result in a tax deduction for me or a taxable gift for them? -- R.Z., via e-mail
Neither. In 2007, you can give as many people as you want a gift of $12,000 each without being subject to the gift tax (which, if applicable, is levied on the person making the gift rather than the recipient). If you're married and your spouse joins in the gift, you can give each individual up to $24,000 -- or a total of $48,000 for your son and daughter-in-law. But you can't write off the gift.
An IRA twist
I am retired and have no earned income, but my wife is still working. Does her earned income qualify me to start a Roth IRA? We file a joint tax return, and our earned income is less than $150,000. -- H. Henderson, Pflugerville, Tex.
You've got the right idea. Even though you generally need earned income to contribute to an IRA, your wife can contribute to a spousal IRA on your behalf as long as she earns more than she contributes to accounts for each of you and you file a joint return. If you're 50 or older, you can deposit $5,000 to each account -- for both 2007 and 2006 (there's still time).
To qualify for a Roth IRA in 2007, the adjusted gross income on your joint return must be less than $166,000 (the amount you may contribute starts to phase out at $156,000). You can contribute to a Roth IRA at any age, and you aren't required to make withdrawals even after you turn 70½.
