Ad Valorem is a Latin term meaning 'according to value.' It describes a tax whose amount is based on the value of a transaction or a property.
Ancillary charges refer to additional rents incurred under a Triple-Net Lease to cover expenses such as Common Area Maintenance (CAM), real estate taxes, and insurance.
In the context of real estate, an assessment refers to the amount of tax or special payment due to a municipality or association, or an owner’s or lessee’s proportionate share of a common expense.
Itemized deductions are specific expenses that can be deducted from taxable income to reduce the amount of federal income tax owed. They include costs such as mortgage interest, property taxes, and certain types of losses.
A mortgage correspondent services loans for a fee, managing various aspects such as collecting payments, paying real estate taxes, ensuring property insurance, and others.
Prepaids at closing refer to the upfront payments required by a lender to fund an escrow account for future payments of property-related expenses such as hazard insurance, property taxes, and private mortgage insurance (PMI). They might also cover interest accruing from the closing date until the end of the month.
Rollback refers to the retroactive claim by a taxing authority of a higher tax rate when property is sold after being taxed at a special use rate or when the land is put to a more valuable use.
A tax assessor is a local government official responsible for determining the value of properties within a jurisdiction for taxation purposes, playing a key role in how property taxes are assessed and collected.
Taxes that apply to the sale of a home, governed primarily by Section 121 of the U.S. Internal Revenue Code, which provides an exclusion on capital gains for qualifying homeowners.
A tax representative or tax consultant is a professional who assists individuals and businesses in navigating tax-related matters. These professionals offer guidance on compliance, tax planning, and dispute resolution with tax authorities.
Trade or business property, as referenced in Section 1231, refers to property used in a trade or business activity that can provide tax benefits upon sale or exchange. Such properties are subject to specific tax regulations that can impact depreciation and capital gains treatment.
