Lets say you finish your basement or add a bathroom, this adds value to your house. Taxes are partially based on the value of your home right? How does this work? I live in NY if that helps but in general what happens?
2006-08-27 03:11:15 · 5 answers · asked by bopbo 3 in Business & Finance ➔ Taxes ➔ United States
It's unlikely that a "DIY" improvement inside a home would be discovered by the Tax Assessor.
If a Permit is pulled by a contractor, the Tax Assessor will become aware of it, which may increase the valuation and increase tax.
If an addition to a home increases the square footage, changing the configuration of the home, and a permit pulled, the same holds.
However, outside a city, if a person increases the square footage, changing the configuration,
"DIY", and a permit is not necessary, it will still be discovered at some point.
Aerial photos are regularly taken by counties and a home that has changed "configuration", made larger, will be compared to previous Aerial photos. A physical inspection will be performed, resulting in an evaluation for tax purposes.
2006-08-27 03:29:22 · answer #1 · answered by ed 7 · 0⤊ 0⤋
There is no immediate impact on your income taxes, though there might be when you sell.
Property taxes are a different story entirely, though. If you live in an incorporated area, the building permits will take care of the notification requirement for adjusting the taxable value of the home. If you live in an unincorporated area, you may be required to notify the various taxing authorities of the changes. I live in an unincorporarted area in MO and we just wait out the tax assessor to come by and make the changes. I've been in my place for over 6 years and haven't seen the assessor yet though I have a friend a few miles away who gets a visit twice a year, pretty much like clockwork.
2006-08-27 11:46:43 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
You probably had to apply for a work permit to do this type of work on your home. The tax assessor would know what the taxes are on this value...
2006-08-27 11:44:32 · answer #3 · answered by shortymaciam 3 · 0⤊ 0⤋
You need to look at your local community and how it is that they access the value of your home. Most communities in the northeast will re-evaluate homes once every ten years and don't do anything until the next ten year cycle begins. I would suggest you contact your local town/city hall for more information on this.
2006-08-27 11:50:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If you did it legally and got a building permit, you assessment will go up.
2006-08-27 13:33:52 · answer #5 · answered by Anonymous · 0⤊ 0⤋