I moved in new construction with MR in June 2016. I haven't received a property tax bill yet. I was told that I would be getting a special assessment covering June 2016-June 2017 in march. Then in October, I'll get a tax bill covering July 2017-June 2018. Is this accurate? That would mean that I'd pay 2 years worth of property tax 6 months or so apart. Also, I assume the 2 payments will go on my 2017 federal/state taxes and not 2016. Is this correct?
Property tax new construction
- Thread starter yoyo2012
- Start date
paperboyNC
New member
Not sure about the special assessment. The bill in October will have 50% due Dec 17 and 50% due Apr 18.
Yes, tax deductions are cash basis.
Yes, tax deductions are cash basis.
BruinDoc
New member
From what I can tell the property tax goes from July 1 until June 30. You'd owe a tiny smidge from June whatever day you closed until June 30, and then the new tax year from July 1 until next June 30. I think the pro-rated MR is credited to you in escrow by the builder so you make a the full payment on the statement. You then get supplemental bills for the land value and then the 'improvements' i.e. the home structure itself. I think the land bill comes first since it has already been assessed by the county. The county then sends the improvements part of the bill after close and recording so they know what the valuation is. But since you closed before July 1 you will get all of these x 2. Super confusing I know, but you can be sure the county of Orange will get their $$$! >yoyo2012 said:
Perspective
Well-known member
Yes, property taxes are deducted in the year in which the expense is incurred. So if you want to prepay any property taxes before they're officially due, you would deduct those payments in the year the payments were made.
Remember though, if you're buying a new house in Irvine, your household income is likely high, meaning you'll likely move into AMT territory reducing the effective deduct-ability of property taxes.
Remember though, if you're buying a new house in Irvine, your household income is likely high, meaning you'll likely move into AMT territory reducing the effective deduct-ability of property taxes.
irvinetalker
New member
Look up your property on the OC Assessor's site if you're worried:http://tax.ocgov.com/tcweb/search_page.asp
Your annual tax bill is due in two installments every year, so don't worry about getting hit with a whole year all at once. Partial years are pro-rated. If you have a home loan you may have your tax bill already rolled into your monthly payment with just one "supplemental bill" you have to pay separately your first year.
Your annual tax bill is due in two installments every year, so don't worry about getting hit with a whole year all at once. Partial years are pro-rated. If you have a home loan you may have your tax bill already rolled into your monthly payment with just one "supplemental bill" you have to pay separately your first year.