Quote Quoting kunrj
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Thank you very much for the answers. At this point, I have no plan to sell the house and I am living in it now. I might a year from now but I don't have a plan at this point. I can understand that if I want to sell the house now, I would want to have it appraised with a higher value, but that would mean paying more estate tax. I called and as a person from the NJ tax division and she said that I could submit the value of the house based on the appraised value for personal property tax, but if the value is not a good representation, they could challenge it.
Check Zillow and put in the address and see what Zillow says is the market value. If that's within a few percent of the assessed value, then use the assessed value. Print out the Zillow page. Printing out a webpage generally inserts a date on the page and you'll want to keep that in your files.

I suspect that it's easy enough for the taxing authority to check Zillow as well, so if the market value is higher you might have to bite the bullet and pay the tax.

I guess one advantage to paying tax on a higher value now is that you'll pay less capital gains tax if you sell the house in less than the 2 year period as your primary residence that would allow you to avoid the capital gains tax on gain of up to $250,000.

Are you getting the house free and clear with no mortgage left on it?