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>increases in property taxes Not an issue in the bay area >the taxable revenue from the rental and its impact on personal taxes Progressive income taxation s
by opportune 7y ago
>increases in property taxes
Not an issue in the bay area
>the taxable revenue from the rental and its impact on personal taxes
Progressive income taxation should make this moot. Also many expenses are likely tax-deductible. Combined with FHA terms, mortgage interest deduction, etc. and this is actually rather tax-advantaged over regular rentals
- refurb 7y agoNot an issue in the bay area Why not? Prop 13 protects the homeowners from higher taxes if the property appreciates, but as far as I know that doesn’t cover renovations. Otherwise you could buy a beat up $1M, year it down and still pay the same taxes.
- sburl 7y agoThe way this works with ADUs is a blended approach. The existing home's tax status is protected by Prop 13 and the ADU as a structure is appraised. While adding an ADU adds considerable resale value to a home, tax assessors don't typically value them that highly. It's also worth noting the ADU also becomes protected under Prop 13 after the initial assessment (https://maxablespace.com/granny-flat-tax-implications/ https://maxablespace.com/granny-flat-tax-implications/)