Results 1 to 10 of 10

Thread: So, what do I do now, taxes versus bank issue....

  1. #1
    Join Date
    Sep 2011
    Location
    Pittsburgh, PA
    Posts
    290

    So, what do I do now, taxes versus bank issue....

    OK, all, you might have seen some pics of my workshop, and I am all but complete, minus the tools for now.

    I knew I was goig to have TAX issues, but the position I am in is crazy.

    Here it is......Since my addition is permited, all inspections were done and passed, and the addition for the workshop is attached to my main structure, and I have a LG mini-split AC/heat pump, the County and School crack me on my taxes - I knew and saw this coming....thye consider it habitable space, becasue of the heat.

    Now, since I paid for this out of pocket, for the most past, I decided I would like to get some cash back and get a Equity loan on the Addition. After paying for (2) seperate Appraisals, both Appraisers said the space is not considered living space, even with the mini-split, I just have a VERY NICE covered porch on of them told me.

    So, the County and School taxed me on habitable space, and the bank said it's not. My Appeal time has passed, taxes are paid so I am out there, and the bank wont give any Equity, just not the value I tought it would, because they don't consider it living space.

    Should I remove the mini-split for next year and Appeal? or just forget about it? Not sure what to do!!

    THX

    JJ in Pittsburgh

  2. #2
    Join Date
    Mar 2003
    Location
    Monroe, MI
    Posts
    11,896
    I think you shouldn't worry about it and go make something in your nice shop.


  3. #3
    Join Date
    Feb 2011
    Location
    Central WI
    Posts
    5,666
    Even with low interest rates debt is bad so don't borrow unless you have a really great use for the money. Don't borrow for non income producing assets and don't borrow to invest unless in your own business. I've run an accounting business forever and debt is the single worst financial obstacle to economic success. Dave

  4. #4
    To be honest, I'd rather have the habitible space judgement from the town. They are implicitly stating that when you sell your house, you can up the habitible square footage, which in turn, makes the property more valuable to a buyer who might want to use it as living space.

    when I built my garage, I had to sign a form stating that I would never covert it to living space, and it miffed me off quite a bit.

  5. #5
    Join Date
    Nov 2005
    Location
    Seabrook TX
    Posts
    475
    If you spend more time in the shop than in the bedroom, they might have a point about "habitable space".

  6. #6
    you may be sol for this years taxes.... but I'd make an appt. to go see the assessor with written statements from the bank appraiser and see if you can get your assessment changed for next year.

  7. #7
    Join Date
    Dec 2010
    Location
    NW Arkansas
    Posts
    1,951
    Blog Entries
    1
    Just how much did this increase your taxes? $500 or $5000 per year?
    I'd not argue if it is rather low, I'd go with what they said and it will increase your value. If high, then it is worth it over time to not pay the extra taxes if possible. But like the OP said, don't borrow and for sure go make something!

  8. #8
    It doesn't seem to matter where you live in the US, your local appraiser is going to nail you if you improve your property. Seems like they have the most agressive people with the worst attitudes in the appraisers office. And they don't care what you do with your property, just classify it to get the most tax out of it.

  9. #9
    Join Date
    Aug 2009
    Location
    'over here' - Ireland
    Posts
    2,532
    Bureaucracies unfortunately are inevitably self serving and predatory beasts....

    ian

  10. #10
    You know what they say about death and taxes.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •