2007-02-08 09:40:44 · 4 answers · asked by cjbwhite1 1 in Business & Finance ➔ Taxes ➔ United States
Real Estate Taxes specifically refer to taxes on real estate. Property Taxes refers to any tax on any property (real or personal) that is levied based upon the value of the property.
Some states levy Personal Property Taxes on vehicles, boats, RVs, farm animals, etc. If those are based on the value of the property, the are deductible if you itemize.
2007-02-08 09:54:38 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I always explain this question to my clients this way... It's more techical than this, but it's a way to understand it. Even though you are buying or own a house, is just like if you where renting the land from the government. You can pay off your mortgage but still need continue paying your taxes every year in December. The Property tax, is something you pay one time when you purchase something, and is yours free and clear from then on. In Real Estate even though is the wealth builder machine that most millionaire used you will have to pay both taxes. But on the other side of the coin... You will get a lot of tax brakes that will wash off the prior ones.
For instance, if you own and occupy a residence as primary residence 2 out of the last 5 years (do not need to be consecutive) you get a tax break of up to $250,000 as single and $500,000 as a maried couple. You could use the IRS code 1031 also known as 1031 exchange for investment properties, in which you get a tax break if you purhase another property of equal or higher value withing a few month (other rules and time limit apply), you can roll over your equity into the new house becoming tax free. Then you can refinance it, and put the money in your poket.
As a person, you only hate the IRS if you don't understand the rules, otherwise you'll love it...
2007-02-08 18:04:57 · answer #2 · answered by Is It in the constitution? 2 · 0⤊ 5⤋
Real estate tax is also called property tax. However, you also have "personal property taxes." This is like you car or boat registration
2007-02-08 17:46:32 · answer #3 · answered by Dizney 5 · 1⤊ 0⤋
Generally the house that you own and reside in will be considered Property where as if you own several houses that are investment properties they would be considered Real Estate. Real Estate holdings may include houses, coops, townhouses, condos, empty lots and commercial properties.
2007-02-08 17:52:42 · answer #4 · answered by Anonymous · 0⤊ 1⤋