Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.
04-11-2018 08:34 AM
I have been struggling with these taxes for a good week and calling or chatting has not been terribly helpful so I'm going to give this a try.
1/ These numbers are just an example, it helps me figure out what is being done so I bought a house in 2016 for 100,000. it listed an additional cost of prorated county tax, school tax and home association fees to it of $500 and title lawyers fees of $1400. The section says on HR program includes fees and purchase cost of the house, The house was not rented in 2016 and no major renovation. Rented the whole year in 2017.Is the total basis for the home 100,000+1400 or does it include the prorated tax portion as well? I'm getting conflicting answers from people.
2/ The land basis. Looking at the forum some say town homes-we don't own the land so that should be blank or 0. I called the home association and they said we do not own the land. However, i was curious, going on the county website it states say:
Total assessed value :50,000
Land assessed value: 2,000
I was going to do the ratio of that 2,000/50,000=.04 *100,000 to get the land value. So question is since we don't own the land then I leave it blank in the program? If so, why was there a total land value? What is that?
3/ This is a interesting question, when I called the home association- they said I can't use the home association fees (300) as a deduction. Is that true because most people say to take it toward expenses since its an expense.
4/ Does school tax and property tax get lumped together in real estate tax or does school tax goes somewhere else?
Thanks you so much for your time to help me out. Let me know if you need more information I'll respond asap. Appreciate it
04-16-2018 02:14 PM
Lots of good questions here!
1. the basis of the home would be 100,000 + 1400.
2. the land basis would be 0
3. home association dues are NOT a deduction.
4. property tax and school tax would be lumped together
Hope those answers help!!