We’re rewarding the question askers & reputations are being recalculated! Read more.
293

You have a misunderstanding of what a mortgage means. The bank does not own 80% of your home. Instead they have lent you some amount of money, and they have a lien which means they can possess your home if you fail to pay it back. They are not responsible for any costs of your home. I know people popularly say "the bank owns 80% of my home" but it is not ...


50

Slight addendum to the already posted correct answer: The institution who lent you the money has no reason to pay the property tax on your building. They aren't using water, taking showers, flushing toilets, getting police and fire protection, driving on city streets, etc... However, they do have a profound interest in ensuring that you pay the property ...


32

In some jurisdictions you can donate the development rights. You and the family still own it, but nothing can ever be built on it. In some cases you will still be able to build a cabin or similar structure on a few acres, but the bulk has to be left natural. The advantage is that by giving away the logging or other development rights the land loses much of ...


25

Property taxes, where they exist, are generally levied by cities, counties and other local-level administrative bodies like MUDs, and are the primary source of revenue at these levels of government. These taxes pay the lion's share of the expenses for basic services provided by a city or county: Local road maintenance/signs/lights Utilities infrastructure (...


15

Unintended Consequences - Yes, to T.M.’s addressing the tax issue. But. “Put the house under my name” implies a gift. Mom is gifting you the house. Along with its basis. Which means, when mom dies, you don’t get a stepped up basis, and potentially have a huge cap gain when you sell. Funny story. In a nutshell, my sister now owns a house worth $800K with a $...


13

You will need to check the language of your sales contract. Most of the time, it will be written that the pro-rated property taxes will be part of closing costs. In general, If you've already paid taxes, then the buyer will pay you the pro-rated portion of that, from the closing date through the end of the year. If you haven't, then you would usually be ...


13

"Open Enrollment" is the process in which a resident of one district attends school in another district. Ohio does have open enrollment. There are rules and procedures that need to be followed to take advantage of it. Ohio Department of Education has a web page on it: http://education.ohio.gov/Topics/Quality-School-Choice/Open-Enrollment First, you need ...


13

Ditto DJClayworth. As long as you make your mortgage payments, the bank has zero property rights in your house. The bank cannot evict you from the house. People from the bank cannot enter the house without your permission. They certainly cannot just decide to move in one day. The bank has no say in what furniture you put in the house, what color you ...


12

The assessed value of a home virtually never matches the market value, especially for established neighborhoods (which is not your situation, I grant). It is virtually always lower, because if it's ever higher than the market value, the homeowner can hire an independent appraiser and contest the assessment, while if it's lower, the homeowner usually doesn't ...


12

When a house is sold at a foreclosure auction, the selling bank usually does not provide the guarantees that a normal house seller provides. Furthermore, the previous owner may have neglected the property, and/or spitefully damaged the property. Bank-owned properties are often neglected and/or vandalized. Banks are usually too short-sighted to properly ...


12

Of course you can transfer it, and it will be legal. There's no taxes on transferring your own money. There's income tax on gains you realized by selling the property, but that is money you already owe, it doesn't matter where the proceeds are. It also doesn't matter how you acquired the property (except for figuring out your basis). What matters is that ...


10

Property taxes, at least in Canada, are levied by the municipality or city in which the property is situated. For many cities, it is a significant source of income. Part of the justification from the municipal point of view is that the land is serviced, in that it generally has city services like water, sewer, garbage collection and the like. The taxes ...


9

If your deductions are higher than the standard deduction, you will be able to subtract property taxes from your income. In your example, that means that taxes are computed based on $95,000. In 2011, the standard deduction varies between $5,800 (single filer) and $11,600 (married filing jointly). Tax credits are subtracted from your tax obligation. The most ...


9

Simple google search brings this response: 6-20% Limitation -- The rule that assessments of Class 1 parcels may not increase more than 6% in a current year, or more than 20% over a five-year period. There is a similar rule for class 2, called the "8-30% limitation". What it means is that the assessed value cannot increase more than 6% a year, even if ...


9

One way to look at it is to ask yourself what you would have to pay if you moved out and rented a house or apartment on your own. If the cost of doing that is comparable to the cost you pay by living in the house, it would seem that that is a reasonable price for that arrangement. In other words, consider the price of a substitutable good (namely, ...


9

If you don't itemize and wouldn't gain any benefit from itemizing the whole property tax amount, then it doesn't matter how much of the property tax you could deduct since it wouldn't lower your taxes any. I'm assuming that you do, or could itemize. The relevant instructions (Schedule A) and publications (pub 530) are pretty quiet on who gets to deduct ...


8

You're crazy to cash out your Roth or take on 401k loan, as that is addressing a short-term problem without doing anything about the longer-term issue. Just don't do it. Through no fault of her own, your mom is insolvent. It happens to people all of the time, and the solution is chapter 7 bankruptcy. The only thing that I would do with my money in this ...


8

I am not an expert in these matters, but the flat could be considered a benefit in kind. As such, you may be subject to tax on the value of the property. The Citizen's Advice Bureau have a good breakdown on what benefits are tax free here. In particular, check out the section on "Common benefits in kind". It lists what exceptions are made for property. If ...


8

My experience (two purchases, Ontario, Canada) is that the property taxes are paid by whomever is the owner on the date the tax bill comes due. The bill might be due before the owners even decide to sell. However: A part of the closing process is a Statement of Adjustments, in which various costs that span the tenure of two owners are split on a per-...


8

A real estate business could offset income from occupied property with costs from vacant property held for speculation. For speculation, you can let a building rot, then get it reassessed. If the jurisdiction assesses part or all of the tax bill on the value of improvements, this can drop the annual tax bill significantly while you hold. If you plan to ...


8

Your argument hinges on the hypothetical: If we were not living here, taxes and insurance would still have to be paid. Your siblings could just as well argue that if you were not living in this house, you would have to buy a house of your own or rent an apartment. Therefore, in fairness you should pay rent to the other two siblings for the fair market value ...


8

The real answer why the government is "allowed" to do something is because they are the government and they make the rules. There are lots of laws that I think make no sense. I ran into a similar situation to yours. I bought a house during a time when the market in my area was way down. The previous owner had paid $140,000 but I got it for only $80,000. The ...


8

According to the IRS announcement, you can pay property taxes due in 2018 in 2017, and deduct it in 2017 federal tax deductions, only if the tax was assessed in 2017. If your tax hasn't been assessed, you are out of luck.


8

The laws are set, however the policies and guidance are still being finalized at the IRS (as of mid-December, 2018). You can observe this yourself by searching the web for "2018 IRS Form 1040" and etc, many of the forms returned are still listed in 'draft' state, and bear the warning "DRAFT AS OF {DATE}, DO NOT FILE". While this might seem unusual, even in ...


7

Are there are tax implications for buying an apartment in another country (as a US resident with Green Card)? Yes. You have to report your foreign bank accounts if your balances are above certain level (search for FBAR requirements and form 8938). If you hold the property through an entity (trust, LLC, partnership, corporation, etc) - there are more ...


7

To make matters worse, if you pay the property tax your mother in law can't take the deduction either. You may be better off paying rent and having her handle the property correctly, as a rental.


7

School districts are on the lookout for this. Families decide to live in a jurisdiction with lower taxes or better environment, but want their child to go to school in another district for academic or athletic reasons. You want one local government to believe you live in one place, but you want the school to believe you live in another. The home district ...


7

The $10K SALT (state and local tax) limit is the sum of: State Income Tax OR State Sales Tax (whichever is higher) + Real Estate Tax = at most a $10K deduction In your case, if your state income or sales tax paid next year is at least $2K, then you will max out the SALT deduction. In order to itemize next year you'll need to have at least $2K more in ...


6

I would estimate the total costs as somewhere from £1,000 to £3,000. Stamp duty is indeed 0% below £125,000. It's 1% of the total house price in the range £125,000 to £250,000. There was a temporary exemption for a while for first-time buyers, defined as never having owned a house before. That's ended now, though. You need a survey of some form when ...


6

Property taxes cover more items than have already been mentioned. As an example, my property tax bill lists the following items: county general purpose, community college, police, police, headquarters, fire prevention, environmental bonds, sewage, town general purpose, highway department, building & zoning, town lighting, park district, garbage disposal,...


Only top voted, non community-wiki answers of a minimum length are eligible