I just bought a house that was in foreclosure. The house is realistically worth about 900,000.00, after I finish fixing it up. But, I bought it for about 475,000. I think my taxes property taxes should be based on the figure I purchases the house for, but the city is basing the taxes on what it likely should be valued. How can I fight this and should I, can I come to a compromise with the city somewhere in between? How do I handle this because I could not sell the house in this market for what I paid for it? It is in MI by the way. Any opinions would be helpful.

Appealing residential property values can be tricky. I would consult with a property tax consultant first, before I negotiate with the city assessor. Negotiating with the assessor first could hurt the actual outcome at the Tax Tribunal or upon appeal.

Contact:

Scott Aston, CPA
Honigman Miller Schwartz and Cohn
2290 First National Building
660 Woodward Ave
Detroit, MI 48226-3506
O: 313-465-7206
F: 313-465-7207