How much is my property tax? Sister selling house at lower price.?
Hi My sister and brother-in-law are selling their house to me. The market value of the house is around 300,000. However they are going to give me a huge discount and sell it to me for 0,000. I wonder if I will pay property tax based on the higher market value or the purchase price? The house is located at California. Thanks!
Tags: property tax, sister and brother
June 4th, 2010 at 7:43 pm
Othniel is correct. However, the property appraiser has no way of knowing it’s a sale between family members. What they look at is the sale of comparable properties. The property apprasier my classify the sale as not being an arms length transaction and they will establish its taxable value based on comparable properties. It’s current tax assessed value should give you a good idea as to what your taxes will be.
realtor.sailor
June 4th, 2010 at 7:43 pm
More than likely the county appraiser will consider the fair market value of the property rather than what you paid for it. One very good reason is because it is not a "arm’s length transaction" since it is an arrangement between relatives. However what I have said is generally true but to be sure you need to call the property appraiser’s office or go there and ask them how they value property for tax purposes. They usually have a policy that often can be found on their web site or you can go into the office and have someone explain it to you.
But, what a deal! Your sister and her husband must be very generous people to give you such a price consideration on this house. You could spend a lot of money on taxes and still be far ahead of the game of building wealth.
June 4th, 2010 at 7:43 pm
get more details ; open the second & fourth link in: http://www.cut-my-tax.co.cc