Property Taxes?

[Renauda]

Right now I pay $521/month for our principal residence and $180/month in property taxes for the 1 acre vacant lot on Lake Okanagan that we may or may not build on and move to in five or so years. That vacant lot has gone through the roof in assessed value last four years. When we bought it 2016 it was around $65/month. As they say, location, location, location. Since then too many NHL players have bought into the subdivision and built their “summer cottages”.

[Mik]

@George-K exactly.

[89th]

@Axtremus said in Property Taxes?:

@George-K said in Property Taxes?:

Define "rich."

Anyone who has or makes more money than I.

Not sure how much you make but the top 10% (income over $150k) pay about 75% of all income taxes. On the other side, the bottom 50% pay about 3% of all income taxes. Of course that bottom 50% also consumes most of the tax-based benefits from the government.

But we’re talking property taxes, so that’s another story. Probably a similar thesis though.

[Mik]

I don’t think there is quite the spread between property values as there is in income.

[89th]

Maybe. Those paying property taxes are those who own, not rent (or are houses for free).

[Renauda]

Can US residents write off their property taxes on the annual income tax returns? We cannot. Nor can we write off the annual interest paid on principal residence mortgages.

[89th]

Yes if you don’t use the standard deduction.

[George K]

@Renauda said in Property Taxes?:

Can US residents write off their property taxes on the annual income tax returns? We cannot. Nor can we write off the annual interest paid on principal residence mortgages.

Yes, but, in addition your other deductions have to exceed the standard deduction.

And...

You're limited to $10K of tax deductibility.

[LuFins Dad]

This subject has @jon-nyc feeling SALT-Y

[jon-nyc]

Yeah. It's funny how he said he wants to remove the SALT cap, at least that was his message in Long Island. But I'm sure that, like tips, social security, and overtime, the Long Island folks who voted for him for that will just be yet more unsecured creditors holding the broken-promise bag.

[Axtremus]

@89th said in Property Taxes?:

Maybe. Those paying property taxes are those who own, not rent (or are houses for free).

Property owners factor in property taxes when setting rent.
Renters pay property taxes too, just indirectly through property owners.

[Mik]

@Axtremus Yep.

[George K]

@Axtremus said in Property Taxes?:

Property owners factor in property taxes when setting rent.

Of course. When I was a landlord, I did.