property tax | TaxConnections is a where to find leading tax experts and tax resources worldwide.

Tag Archive for property tax

16 Jan 2019

Written by Aaron Giles | Posted in Michigan Sales And Use Tax

Determination Of Property’s Taxability For Michigan Sales And Use Tax

When you want to determine property’s taxability for Michigan Sales and Use Tax there are three factors to determine whether an item is tangible personal property or a fixture attached to the real estate:

1. Whether there is actual or constructive annexation of the item to real estate – An object will not be determined to be a fixture unless it is attached or affixed in some manner to the realty. Michigan courts acknowledge that there are “innumerable ways” that items may be attached or affixed to real estate. Actual attachment or affixation can be as slight as being bolted or anchored to the ground. Constructive attachment or affixation occurs when an item whose weight, size or character are such that the intent of placing the item was to have that item become part of the real estate even if that object is not physically attached to the real estate.
2. Whether the item is an adaptation to the real estate – An object meets this criterion if the item modifies or adapts the application or use of the building. Examples include: a drive up window either at a fast food restaurant or bank, dock seals or doors, or seating which is attached to the floor inside of a venue such as an arena or theater.
  Read more

No comments | Tags: Michigan Sales And Use Tax, property tax

25 May 2018

Written by Jon Neal | Posted in Deductibles • Property Tax

Tax Advantages To Owning A Second Home

No matter the location, size, or value of a second home, certain tax advantages are built in. However, your opportunity to benefit from them depends on how you use the property.

Personal Use

Both property taxes and mortgage interest are as deductible for a second home as they are for your primary residence — and are subject to the same limitations. If you file a joint return, you cannot deduct interest on more than $1 million of acquisition debt ($500,000 for married persons filing separately) on one or two homes.

Two tax advantages of homeownership are not available for a second home — the immediate deduction of mortgage points when purchasing and the capital gain exemption when selling. Both tax breaks require the home to be your “principal residence.” However, you can deduct the points on your second home’s mortgage over the loan’s term.

No comments | Tags: Deductibles, homeowners, Jon Neal, property tax, Rental Property

24 May 2018

Written by Aaron Giles | Posted in Sales And Use Tax • Sales And Use Tax Manufacturing Exemption • Sales/Use Tax

Determination Of Property’s Taxability For Michigan Sales And Use Tax

In Michigan sales and use tax law determining whether an item of tangible personal property remains tangible personal property or becomes a fixture affixed to real estate can significantly affect the taxability of the item in question. This determination may impact whether the taxpayer is considered a retailer or a contractor.

There are also several exemptions in Michigan sales and use tax law for purchases of tangible personal property that do not apply if the item is instead a fixture. The Michigan sales and use tax exemptions for both the agricultural industry and the industrial processing or manufacturing industry include such language.

No comments | Tags: Aaron Giles, Michigan, property tax, Sales and Use, Sales and Use Tax, Tangible Personal Property

16 May 2018

Written by Grant Gilmour | Posted in Income • Property • Real Estate

Change In The Use Of Real Estate

In real estate, it is common to change the use of property from income producing to some other purpose such as personal use and vice versa. When a change of use does occur, the property may be deemed disposed of at fair market value. There are different types of changes in use that will be discussed further and their respective tax consequences.

In a partial change in use, a taxpayer is deemed to dispose only a portion of the property. For example, if a property is used 60% for business and 40% for personal and now the property will be used 100% for business, then there will be a capital gain or loss on only 40% of the property at the fair market value. This is under the assumption that the property is personally held. If the corporation owned 100% of the property, then there may not be a capital gain on this partial change of use. However, the individual may have to pay rent at fair market value for their personal use portion.

One comment | Tags: Grant Gilmour, property tax, Real Estate

14 May 2018

Written by Jon Neal | Posted in Capital Gains • Deductibles • Deductions • Property Tax

Are There Advantages To Owning A Second Home?

Whatever the location, size, or value of a second home, certain tax advantages are built in. However, your opportunity to benefit from them depends on how you use the property.

Personal Use

No comments | Tags: Capital Gain Exemption, Deduction, Jon Neal, Milwaukee, mortgage interest, property tax, Tax Advisor, Tax Blog, TaxConnections', USA, Wisconsin

11 May 2018

Written by Mishkin Santa | Posted in Property Tax • Texas Tax

Should I Submit A Residential Property Tax Protest Annually?

If you’re a homeowner, a residential property tax protest should always be on your radar around this time of year – even if you filed one last year and won.

The truth is, property tax calculations are based on a lot of arbitrary data – data you just don’t have control of. Appraisal districts use recent home sales and other market info to create your home valuation, and in today’s market, a good chunk of properties are being over-valued. In the end, that means a higher property tax rate and more money out of your pocket – year after year. Read more

No comments | Tags: austin, Mishkin Santa, property tax, Property Tax Protest, Residential Property Tax, Tax Advisor, Tax Blog, TaxConnections, Texas, Texas tax, USA

04 May 2018

Written by Mishkin Santa | Posted in Property Tax • Texas Tax

6 Property Tax Protest Tips For Texas 2018 Deadline

Deadlines for property tax protests are quickly approaching, and if you want to lower your appraised value – and subsequently your annual tax burden – the time to act is now. To help you get started (and see success) we’ve pulled together some of our top property tax protest tips below. Use them to your advantage to lower your tax bill – both now and years down the line.

Use a pro. When it comes to property tax protest tips, none is more important than this one. Using a professional to handle your tax protest comes with so many benefits. Most importantly, it gives you an expert, knowledgeable partner who can build your case and boost your chances of success. They know what it takes to win a protest, and they can make it happen. Using a pro also adds convenience for you. There’s no gathering of evidence or tedious forms, meetings or hearings. They do it all for you. It’s easy, simple and hassle-free.

No comments | Tags: 2018 tax law, austin, Mishkin Santa, property tax, Tax Advisor, Tax Blog, Tax Protest, TaxConnections, Texas, Texas tax, USA

18 Apr 2018

Written by Aaron Giles | Posted in IRS • Levy

Important Facts To Know About IRS Levy

A levy is a legal seizure of your property to satisfy a tax debt. Refusal to pay the tax will have the following result. The IRS will usually issue a levy after they assess the tax and send a tax bill or a Notice and Demand for Payment.

If you still refuse to pay, then the IRS will issue a Final Notice of Intent to Levy and Notice of Your Right to a Hearing at least 30 days before the levy. The IRS may give you this notice in person, leave it at your home or business, or send it to your last known address by certified or registered mail with return receipt request. Read more

No comments | Tags: Bernell Ward, Bronx, IRS, Levy, New York, property tax, Seizure, Tax Advisor, Tax Bill, Tax Blog, tax debt, TaxConnections, Taxpayer Property, USA

16 Apr 2018

Written by Thomas Zaino | Posted in CRA • Property Tax

Residential Property Tax Abatements: Are You Overpaying Your Property Taxes?

It is no secret that tax incentives are commonly offered to businesses in exchange for job creation and community development. It is lesser known, however, that tax incentives serving a similar purpose are also offered to owners of residential property. Community Reinvestment Areas, or “CRAs,” are designated areas within municipalities or unincorporated county areas that local governments designate as neighborhoods containing housing facilities or structures of historical significance and where “new construction” is discouraged. The underlying goal of establishing a CRA is to revitalize, rehabilitate, and remodel existing structures within the boundary of the CRA. Ohio currently has over 400 cities, townships, and villages with established CRAs. Read more

No comments | Tags: Columbus, Community Reinvestment Area, CRA, ohio, Ohio tax, property tax, Residential Property Tax Abatement, Tax Advisor, Tax Blog, TaxConnections, Thomas Zaino, USA

11 Apr 2018

Written by Jane Swain | Posted in TaxConnections

UK Tax: Capital Gains Tax And Housing Information

Your home is exempt from Capital Gains Tax (CGT) when you sell it, In contrast, buy to let properties sold at a profit are liable to CGT. However, in certain circumstances, some or all of the gain on a let property is also tax free. This works best when you let a property which used to be your home, for example you trade up but keep your old house, or a couple move in together and keep both houses, one of which they decide to let. However it can also apply if you acquire a property, let it for a few years and then decide to move into it. Read more

No comments | Tags: Capital Gains Tax, CGT, Jane Swain, Letting Relief, Manchester, property tax, Tax Advisor, Tax Blog, TaxConnections, UK Tax, United Kingdom

03 Apr 2018

Written by Grant Gilmour | Posted in Canada • International • Real Estate

Canada Tax: Capitalization Of Development Cost Under The Income Tax Act

During the development phase or period of construction, there are many costs that are incurred. The majority of these expenditures are added to the capital cost of property or to the cost of inventory.

Soft costs do not have to be capitalized once the construction is complete or on the day that the building is substantially (at least 90%) used for its intended purpose. An occupancy certificate or completion certificate issued by the municipal building department is sufficient evidence that construction is complete. Read more

No comments | Tags: Canada, Canada tax, Grant Gilmour, Income Tax Act, property tax, Real Estate, Tax Advisor, Tax Blog, TaxConnections, Vancouver

28 Mar 2018

Written by Grant Gilmour | Posted in Canada • International • Property Tax • Real Estate

Real Estate Expenses After Acquisition Of Property For Tax Purposes

After a property is purchased, there is generally a time period that a property is held before it is developed. Common expenses that are incurred are property taxes and interest. Other expenses incurred can be classified as an operating expense, added to inventory cost or capitalized for tax purposes.

Property taxes and interest on vacant land are generally capitalized or added to the cost of inventory for real estate. These expenses on vacant land can only be deducted in the same tax year if there is property income received and the corporation is not in the business of development. Read more