Estimating Tax Change

Hi guys, I’m just in the final stretch of a closing on a home, and trying to figure out how to estimate taxes on the place. The home will have a new C/O, which we know should affect taxes. However, our broker, architect and an accountant specializing in property taxes have given wildly different numbers on what to expect on taxes. The difference in estimated taxes is large enough that it could be the difference between deciding to move forward on the purchase or not. Does anyone have a recommendation how I would be able to make sense of this and figure a reliable ballpark figure on what to expect for taxes? thanks!

jakester

in Taxes 8 years and 10 months ago

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ventilated | 8 years and 10 months ago

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What Resident2 said. Talk with an attorney who specializes in tax certiorari. The property’s current taxes will evaporate with the change of C/O and your new taxes will be based on current comparable sales + your renovations.

Augustiner | 8 years and 10 months ago

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If it’s a 1-3 family taxes are less than a 4+ family. The calculation is different.

resident2 | 8 years and 10 months ago

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It will hit you like a ton of bricks approximately two years after you have closed on it. And as you have just bought it and with a new C of O, it will be considered like a new build, and with your sales price it is clearly the market value and based on that price and the tax class you are in ……do the numbers. This is why you often see houses coming back on the market within a couple of years of purchasing a developers flip.