It was in the mid of March, that we started accepting the new normal of covid-19. From the very beginning of the quarantine, the real estate market was into a storm of highs and lows. Though the work-from-home policies of various companies succeeded with their workflow, this has emptied most of the commercial properties and retail properties which made a huge impact in 2020. This has affected the property taxes and many people to aid their operating expenses.
What is external obsolescence?
External obsolescence is a form of depreciation that is caused by external factors and not by the property. It is completely caused by natural disasters or something that is not related to the property. The depreciation caused by this external obsolescence has nothing to do with the property itself.
In this case, depreciation has happened because of the pandemic. The pandemic just stopped people from commuting but the business revenues are booming with online activities, however, the businesses without online interaction, are finding it really hard to manage the money invested in property and paying the staff without proper revenue. The best example of this scenario would be hotels. They may be in utter confusion about how to deal with the pandemic and financial crisis. This external obsolescence is changing into economic obsolescence in many of the businesses who make their business with customer visits.
How will this impact property taxes in 2021?
The property taxes for the year 2021 is on its way and property owners must plan accordingly for protesting their property taxes. Protesting is one of the finest ways to reduce high property taxes. Even performing self-study of the property can help you to gain more insights on reducing taxes. Some acts like CARES are helping out business in many ways but it is better to save now rather than paying your taxes with a penalty.
If you want to find new ways to reduce your 2021 property taxes, then you can PROTEST WITH O’CONNOR. Don’t be a victim of high property taxes in the upcoming year 2021. Start protesting and save your business from unfair taxes!