Quick Property Tax Question

[ponyfool]

I just got my tax bill in the mail. It was about what I expected considering some of the bond measures we passed last year. My question is, next year, I'm going to get hammered because my house is essentially new again after being restored from our house fire.

My question is, my house was uninhabitable and a burned out shell for 9 months of the tax year. Is that taken into consideration for my taxes?? I know it should be, but is it??

 

[CALSI]

I just got my tax bill in the mail. It was about what I expected considering some of the bond measures we passed last year. My question is, next year, I'm going to get hammered because my house is essentially new again after being restored from our house fire.
My question is, my house was uninhabitable and a burned out shell for 9 months of the tax year. Is that taken into consideration for my taxes?? I know it should be, but is it??

Talk to your county tax accessor. Number should be on property tax bill. Also look into pub 17 IRS for any write off you might be able to claim for having to move out of your house while it was being re-built.

 

[Bustanut joker]

Tax advice? From this buncha ********? What, you want to spend all your time at your place of employment in a cell?

Just when ya think ya have someone pegged as knowledgeable

Seems Like you'd get that kind break though :dntknw: IRS is one funny bunch

:jester:

 

[Fencer]

My question is, my house was uninhabitable and a burned out shell for 9 months of the tax year. Is that taken into consideration for my taxes?? I know it should be, but is it??

unless you inform the TA of the condition, you are billed for the full time since you filed homesteader when purchased.

With that said, I would imagine your next year will be the same as all other years, dependant upon if it IS a new house or just considered a remodel. Consult your tax advisor. You may be better off to let sleeping dogs lie and not bring the NEWness to the TAs attention (think long term)

 

[ponyfool]

Let me give a little more info:

In Oregon, due to voter initiatives, and state law, property value increases can only go up x% per year. I don't know what the actual percentage is. As a result, many people, especially in the Portland metro area, the "Real Market Value" is significantly higher than the "Assessed Value" because of said laws.

My house, as currently assessed, has a "Real Market Value" of $340,000, but only an assessed value of $174,000, or, roughly half. Thus, my taxes are $3,800 this year. About what I expected.

The problem is, my house has been completely renovated as a result of the fire. It is now new, and the tax caps that are in place don't apply to a home that's been renovated. Thus, next year, I'm expecting my "Real Market Value" to be roughly $500,000. And because of the renovation, the assessed value isn't restricted, thus it will be close to the "Real Market Value" (I'm guessing in the range of $400,000). That means my property tax NEXT year can realistically be roughly $8,700!!

That's why I'm asking. That's going to be a financial hit. Does any one have any real world experience in this type of situation? Do tax assessors allow for deductions due to fire, etc?

 

[dcarver]

You need to trade that 500k house for my trailer.

Tax problems solved!

 

[ponyfool]

You need to trade that 500k house for my trailer.Tax problems solved!

Next year, I may actually in the market for "a van down by the river"

 

[FJRay]

You need to trade that 500k house for my trailer.Tax problems solved!

Next year, I may actually in the market for "a van down by the river"

Sell out and move over here. The taxes on my place are 1900.00. The house, the shop, the garage, the barn and on two acres. I could fix your bike and you could fix my tickets. :yahoo:

 

[wpbfjr]

here in fla, we have similar situation; 'homestead exemptions', taxes limited to 3% increase a year until it matches market value...

were you here, and be glad you are not, your original homestead exemption and valuation would stand...

butt, then again, you're living in the escape land for the california "fruits and nuts", so, you could be screwed...

sorry...

 

[dcarver]

Chuckle. I do live pretty simply.. and not the nicest accommodations..

but I'm warm and dry in the winter, cool in the summer, and I can fire all sorts of weaponry from my back deck, ride mx on a custom built and watered track, pee off the front deck, go nekid in the jacuzzi without neighbors calling the coppers..

So... I guess it's ALL good!

ps

I will sell all this for 1.5 million. Cash. Quick escrow.

ps.. for 1.5 mill, I'll pay the first year property CA tax..

 

[Mr Bill]

Tax advice? From this buncha ********? What, you want to spend all your time at your place of employment in a cell?
Just when ya think ya have someone pegged as knowledgeable

Seems Like you'd get that kind break though :dntknw: IRS is one funny bunch

:jester:

Ha Ha

Headlines today NYC Police Commish in big trouble for 2000 tax. Criminal case may downgrade to civil. Don't mess with the Feds!

I do taxes for a living, income taxes - not property taxes. I did a lot of work on my house years ago and when the tax bill came in I thought they were nuts and so I sent in an abatement. There are time limits on sending this in. The city came out to look at my house again and the guy felt bad for me so he knocked a little off, but he showed me where the numbers had come from and they were spot on. When they inspect your house for value you do not have to let them inside, but if your going for an abatement I think your stuck and will have to let them in if you want them to work with you.

Why don't you send an abatement in and tell them they are nuts on the new value? Sounds like you don't have much to loose. Here in Worcester the information is public record and on the internet to boot. You should check the footage, condition (this one has a lot of leeway), type of material - ie expensive or common materials (this will have leeway too)...

And like someone else said, see if what the insurance did not cover is deductible on your income tax. Loss has to be more than 10% of your income.

 

[twowheelnut]

My question is, my house was uninhabitable and a burned out shell for 9 months of the tax year. Is that taken into consideration for my taxes?? I know it should be, but is it??

I'd say no. It still has an assessed value and as such, that's what you will be taxed on. I'm gonna guess that they will base it on previous year assessment. I would also guess that you would receive a discounted bill only if you had abandoned the property.

Question: Was the burned house condemned by the city?

 

[ponyfool]

Question: Was the burned house condemned by the city?

It was deemed uninhabitable, so I guess that would be a 'yes'.

And, the fire damage was what spawned the tax review because the contractor got permits to fix it, so the county knows it was damaged by fire.

I'm gonna call tomorrow and discuss it. I wouldn't be interested in doing anything if they would actually tell me what next year's tax bill would be (or at least an estimate). But, a $5k hit on top of a nearly $4k hit is something I need to prepare for.

 

[twowheelnut]

Let me give a little more info:
In Oregon, due to voter initiatives, and state law, property value increases can only go up x% per year. I don't know what the actual percentage is. As a result, many people, especially in the Portland metro area, the "Real Market Value" is significantly higher than the "Assessed Value" because of said laws.

My house, as currently assessed, has a "Real Market Value" of $340,000, but only an assessed value of $174,000, or, roughly half. Thus, my taxes are $3,800 this year. About what I expected.

The problem is, my house has been completely renovated as a result of the fire. It is now new, and the tax caps that are in place don't apply to a home that's been renovated. Thus, next year, I'm expecting my "Real Market Value" to be roughly $500,000. And because of the renovation, the assessed value isn't restricted, thus it will be close to the "Real Market Value" (I'm guessing in the range of $400,000). That means my property tax NEXT year can realistically be roughly $8,700!!

That's why I'm asking. That's going to be a financial hit. Does any one have any real world experience in this type of situation? Do tax assessors allow for deductions due to fire, etc?

Oooooh, now this gets interesting... What was the value of the permitted repairs listed on the permit app? In some cities, this is the amount that they will re-assess in addition to the original value. I would prolly visit your county assessors office tout de suite and work out the details now.

 

[twowheelnut]

But, a $5k hit on top of a nearly $4k hit is something I need to prepare for.

That would be completely unreasonable unless you substantially upgraded the house. If you simply replaced with same and like materials, you'll have a pretty good leg to stand on.

 

[Scab]

you'll have a pretty good leg to stand on.

I beg to differ...leg-less wonder

 

[ponyfool]

you'll have a pretty good leg to stand on.

I beg to differ...leg-less wonder

You had to bring that up, didn't you????

 

[KSFJR]

You really need to talk to your Tax Assessor. Other states rules may be the same but quite probably will be different. It is not like Federal income tax which are a constant state to state.

If you call them, you could do it anonymously or have a CPA, Attorney, or a good buddy call them so that they don't flag you specifically. As far as the renovations go, tell them you just brought it back to original condition with no betterments.

Chester

 

[MCRIDER007]

Assessors value property based on average values per square foot of the various components that make up your property. Unless you invite them into your home to brag about your upgrades, they will probably assign average values just like they did before the fire. If you want to keep your taxes at the same level as before then you should let "sleeping dogs lie" and not do anything that would encourage them take a second look at your tax assessment.