ABA Family Legal Guide

Buying and Selling a Home

Tax Considerations

Tax Considerations When Buying Your Home

Is there anything I can do if my home is assessed at a higher value than I paid for it?

You may be able to appeal the assessment, based on your purchase price. Once you have purchased the home at fair market value, you can appeal to the assessor's board or office. You must prove, however, that the sale was an "arm's-length transaction." In other words, you cannot purchase the home from a relative at a below-market cost and expect that your appeal will be successful. If the assessor grants your appeal and reduces the assessment, future taxes to be paid would be lowered. See chapter 5, "Home Ownership," for more on this topic and on how to lower your property taxes.