4 ms·
I'm curious is there not a property tax effect? Here where I live in Illinois I pay property taxes on my home. Where I live it is currently about 4.4% of my hom
by mzs 5y ago
I'm curious is there not a property tax effect? Here where I live in Illinois I pay property taxes on my home. Where I live it is currently about 4.4% of my home's real value every year. I am able to deduct it from income only for state income tax purposes. There are limitations there that I don't reach based on my income but also I can only do so for a small handful of connected parcels. So in your case you would only be able to deduct for one of your homes. Can you please explain how it works where you live?
Additionally for a home sale in US I have to treat it as income for income tax purposes. In my state there are state, county, and often local transfer taxes as well. Here $1 for every $1000 of sale price to the state and an additional 50c for every $1000 to the county are typical numbers. There are also a number of other fees like recording fees, but those are flat rates.
- RocketOne 5y agoI pay a ton of property taxes. About 1500 a month but its all deductible against rental income except for my primary dwelling. And Ill pay a lot in taxes when I sell the rental houses. My primary dwelling is tax exempt for capital gains but the rest are taxed at 50% of the gain. Eg. If I bought for 300,000 and sold for 400,000 then 50% of the 100,000 is taxable. So if I made 100,000 that year then my new income is 150,000 and that will be taxed at about 36% so Id pay 54,000 in taxes that year instead of 36,000.