My plumber bought a small motel last year and converted it to regular apartment unfurnished rentals. Then he received a notice from the county taxing agency that “Any item depreciated on your Federal income tax must have personal property tax paid on it.”
He showed me the notice and said “I have 2 refrigerators there worth $200 that I’m depreciating and the county wants $7.00 in tax until they’re fully depreciated. That’s really crazy because I’ve already paid tax on them when I bought them and now I’m being taxed again”.
Are any of you landlords paying personal property tax on refrigerators, stoves, washers. dryers, or other depreciable personal property?
My CPAs have never brought this up. Are you rental property owners paying this tax when you pay your real property taxes?
Nah, our taxes are just the standard stuff. You depreciate and take the deduction against your passive income for the year. That’s for the income tax. The property tax has all the things broken down like an amount that pays for the public school, library, etc. Nothing in there like you speak of.
I know some states have something like a “personal luxury tax.” When I was stationed in South Carolina, I remember I got charged a few hundred bucks one year for my car for that “luxury” tax. They based things off the item value so you got hit harder for nicer stuff. That’s the only thing I can think of that would kinda relate to what you’re describing.
Are you kidding? My post is just about my home, not anything else. I live in CALIFORNIA can we say my state just pretty much hooks a vacuum up to my wallet and just sucks everything I got.
I let my impound account take it out in easy or not so easy monthly payments so i don’t get slammed with that bi-annual bill. a couple times they have hit me with a supplemental bill for a little extra money.
and this doesn’t even include all the other fricken taxes and gas taxes, etc. california takes away from us :help :banghead :flush
California is second only to New Jersey in new and creative ways the government steals (yes steals, not taxes) your money away from you. NJ had a blatant unconstitutional budget a few years ago by borrowing for operating costs; prohibited by the NJ State Constitution. The NJ Supreme Court basically said, “…Yeah, its unconstitutional, but we’ll let it slide… just this once…don’t let it happen again”. The state recently realized that too many wealthy people were getting out of NJ, now there’s a NJ Real Estate Sales “Exiting the State” tax. It is absolutely unbelievable the depth the state will plunge to separate you from your money. There really is no way to fix it. Its so broken the only answer is to get out.
Yes, I also pay a tax on the depreciable personal property I have in my rentals in SC. Although, the tax seems to be county specific. In one county I have to file a personal property tax return each year. In the neighboring county, there is no personal property tax.