Property tax auction has started to attract professional investors

Tax Deed Sales are a common way in many states for counties to get their Property Tax Dollars released to them. Delinquent property taxes, if you have them, may put you in a bit of dread. In recent years the prospects of investing in Tax Deed Auctions has started to attract professional investors. In the US if a property owner does not pay his property taxes the government will take that property away from him either through a property tax auction and subsequent foreclosure of the lien or through a Tax Deed Sale. Property taxes, aside from income taxes are often one of our largest tax bills. Often they can be difficult to pay. In 1997 new tax rules for home sellers were introduced contained in section 121 of the tax code. To be able to qualify for these tax breaks, the property that you own must be classed as your ‘principal residence which means that you’ve owned the home for at least two of the five years prior to the sale, and that you have lived in the home for at least two of the five years prior to sale. But if you are a determined individual investor you don’t need to give up and instead can use some of the below creative techniques to still get the Property you set out to purchase.