Tax assessors and real estate taxes work differently in every state. In my state we pay our taxes in arrears. That means in 2014 I pay my taxes for charges and assessments from 2013. It sounds like that is what happens in your state also. All re-assessments must be completed by the end of March here on a yearly basis. New construction is assessed when it is completed or soon after. Only your tax assessor can tell you when it would be assessed. Your builder and banker are probably correct, but I would make a call to confirm this.

We have always kept a good tally of our deductions, and also tithe. We had been keeping those tallies for years, and giving as much as we could feel comfortable giving, and found out after the fact that we usually did not exceed the standard deduction. We don't hold a mortgage, and that could be why. Since finding that out (we have an accountant do our returns), I am more careful now on my timing for contributions, monies into an IRA, expenditures, capitol gains. I donate to charities/churches because I want to help them, but there is nothing wrong with also being able to use it to offset taxes if you can. I guess standard deductions are nice, but if you don't exceed them, even when you give generously, and others who don't give anything still get the same tax breaks......well, it sort of takes the hair off where fairness is concerned. I have been known to make phone calls to my accountant to ask "Is this a good time to buy capital equipment?", "Is this a good time to make a withdrawal from a deferred account?" It really helps to sit down at times other than tax time, to crunch your numbers after the fact and project what your tax liabilites will be or how you can plan deductions to your best tax benefits. Like you are doing, btw. But a lot of people don't. Always run your household finances, like it were a business.

Don't live in NJ but that surely won't be a good thing for anyone. That might put a lot of people into a higher tax bracket. Don't think at this point that would be a good thing for this economy either. There would have to be a restructuring of the tax brackets or a threshhold whereby people under that limit would still be able to claim those deductions. Sounds like time to put pen to paper. Good luck on some better news on this one.

First, be sure you want to write off the sales tax. If you file an IRS Form 1040, and itemize deductions on Schedule A, you have the option of deducting state income taxes or state sales taxes but not both. If you choose to deduct the sales tax, the IRS requires that there be a link between you and the seller of the construction materials. They are:: 1) pay a general state sales tax on the house that is equal to the regular sales tax rate, or 2) buy the materials and pay the sales tax yourself, or 3) pay a contractor who was "acting as your agent" when purchasing materials and paying sales tax. That means the Owner-Contractor contract: must contain wording to the effect that the contractor is authorized to act in your name and must follow your directions on construction decisions. It would be wise to get the exact IRS wording from a tax advisor. In fact the initial decision to deduct sales tax on a home should be made with the help of a tax advisor.