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I always have been a big advocate of this little-known tax benefit. I bought a new condo at a pre-construction price of $200,000 in 2001 and since it was a new project the original tax assessement was the same as the purchase price. However, with all the tax benefits available my adjusted assessed value was only $138,000 and because of the "Dedication" it has been the same ever since! No wonder I am smiling, these units are still selling for more than twice the original price now and my neighbor is paying tax on $453,000! (I know, she is my ex-wife!) [  ]
Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
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When we contacted the Tax Office to apply for this deduction this past September, they warned us that a downside of it is that if the property values escalate as they did a few years ago for example, you would no longer be protected by the 'no more than 3% increase per year clause. The increases in your taxes (at the end of the 10 year period) would more than likely offset any savings you would realize. Not sure if this was scare tactics but it worked on us.
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What do you think why they don't even mention this tax break to anyone? It's not in the best interest of the tax office to collect less tax revenues. Ask your CPA, the 10-year dedication is good for the long term property holder.
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John S. Rabi ABR,CM,CRB,FHS,PB,RB
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John,
What do you have to do in order to get this dedication. Is there a time limit on property which you have bought in the past. I got a property in
in 2004. Do I still qualify for it?
thanks
canhle
canh Le
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So, I was thinking, if you buy land and pay it in full then you own it right? But then I realized, as long as property taxes exsist, you don't own it, but are renting it so to speak from the Government. Kinda depressing to think that you can never really own property. I think property taxes should be abolished.
Daniel R Diamond
Daniel R Diamond
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quote:
Originally posted by Daniel
So, I was thinking, if you buy land and pay it in full then you own it right? But then I realized, as long as property taxes exsist, you don't own it, but are renting it so to speak from the Government. Kinda depressing to think that you can never really own property. I think property taxes should be abolished.
Daniel R Diamond
You would be surprised to know that there are countries where there is no property tax!
Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
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quote:
Originally posted by canhle
John,
What do you have to do in order to get this dedication. Is there a time limit on property which you have bought in the past. I got a property in
in 2004. Do I still qualify for it?
thanks
canhle
You can file for it anytime. However, the deadline is December 31 every year and it will not be effective until the next cycle (August.) It costs $25.00 to file.
Aloha,
John S. Rabi ABR,CM,CRB,FHS,PB,RB
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What about the time period part of canhle's question, John? Is there some kind of commitment that you make to not sell a property within a given time period? Is it as simple as just filling out an application form? Can it be used on an owner-occupied property, instead of a rental?
Aloha! ;-)
Aloha! ;-)
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