I just bought a house, and am planning on buying a few more for investment purposes. I may sit on them a while, buy when the market is bad, sell when values go up, etc. My question, is how do the taxes work. I know there is a property tax and a school tax. I think school tax is 1% of your income, and property tax is like 3% of the houses value. My question, if I own 5 houses, do I have to give 5% of my income to school taxes? Would that make it impossible for anyone to own more than 100 houses? If you're only supposed to pay taxes to the school district that you actually live in, should I get my money back for currently paying for two districts? The house I just bought is in Pittsburgh, PA, and the place I'm actually living is in Westmoreland, co.
Please explain how the taxes work, maybe I'm wrong the parts I think I know. Thanks.
2007-07-30 09:25:17 · 5 answers · asked by Antonio Banderas 2 in Business & Finance ➔ Taxes ➔ United States
buy each house though its own separate corporation. and since you are going to make such a large investment get your self a good accountant to help you through all the questions, forms, and red tape. good luck.
2007-07-30 09:29:44 · answer #1 · answered by Steve 4 · 0⤊ 3⤋
The City of Pittsburgh has a 1% wage tax and a 2% school tax. If you live and work in Pittsburgh then the total tax you will pay to the City is 3% of your PGH taxable income.
But if you do not live in Pittsburgh you do not pay the 2% school tax, you only pay the 1% wage tax. Any you only pay that once.
The expenses you face from property ownership are of course the Allegheny County property taxes, assessed on each property.
2007-07-30 11:22:07 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
In Pittsburgh you pay a city income tax on your income, and much of that is for the schools. This is separate, though, from property taxes, some of which also is for schools. So no, your city income tax won't change no matter how many houses you own, but you'll have to pay property taxes on each house.
If you live in Westmoreland county, you don't have to pay city income taxes to Pittsburgh, you'll just pay the 1% wage tax to your municipality or township. But you will have to pay the property taxes on each house you own in the city of Pittsburgh. And those are not a straight percentage of what you pay for the houses, the tax is based on their assessed value.
2007-07-30 09:46:30 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
It's not owning multiple houses that's bad. What is bad is being so out of touch with yourself that you don't even know how many houses you own. The other problem is related, sort of the same but different. People, candidates for office in particular, who are so filthy rich they cannot even keep track of how many houses or other property they own, and you profess profusely to support the Middle class, are so far removed from the Middle Class they have no idea what the hell they are talking about. For example, Obama's rhetoric about lowering taxes for low income wage earners is an empty spewage because these low income taxpayers are not paying any tax as it is, so 0 from 0 is still zero. That's what's bad about this business.
2016-05-18 00:04:34 · answer #4 · answered by indira 3 · 0⤊ 0⤋
The property tax you would pay is based on the value of the property - not your income.
2007-07-30 09:32:46 · answer #5 · answered by Andy S 2 · 2⤊ 0⤋