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-   -   Tax benefits for basement remodel? (http://www.diychatroom.com/f15/tax-benefits-basement-remodel-7537/)

miked918 04-03-2007 01:44 PM

Tax benefits for basement remodel?
 
I've heard that there is no additional property tax assessed when you remodel your basement, like there would be if you add an addition.

I know it's true in Michigan (where I live), but haven't found if it's generally true nationwide. (Need the info for a work research project.)

I've Googled and have Yahoo'd, but am not finding any source to help.
Any way you can point me would be greatly appreciated.
Thanks.
Mike

KUIPORNG 04-03-2007 02:42 PM

there is additional tax in Toronto...

yummy mummy 04-03-2007 09:32 PM

Oh, yes, certainly in Toronto.

jcrampton 04-04-2007 02:51 PM

tax assessment
 
In Missouri, the assessor's statement shows total floor area of the home (usually the finished area when built), then the basement area, then another section for finished area. For my house the three boxes are 1034, 1320, 0. I assume when I finish the basement the 0 will turn into 1320, but I'm not certain. I think "finished areas" aren't taxed the same way as total floor area.

Contact your county assessor's office for more detail.

KUIPORNG 04-04-2007 03:10 PM

in Toronto, it use values of the place rather than area for taxation.... for basement, it probably add 10,000 to 20,000 to the value of the home for taxation.... I will think if they use area... it is kind of 30% more tax and that is way too much....

yummy mummy 04-04-2007 07:19 PM

You are definitely right Kui****g.
It is the value that brings the property taxes up.
Including the added "value" that a finished basement would add.

AtlanticWBConst. 04-04-2007 08:01 PM

Quote:

Originally Posted by yummy mummy (Post 39628)
You are definitely right Kui****g.
It is the value that brings the property taxes up.
Including the added "value" that a finished basement would add.

I think I will park a few broken down cars on my front lawn.....:wink:

yummy mummy 04-05-2007 08:23 AM

Quote:

Originally Posted by AtlanticWBConst. (Post 39636)
I think I will park a few broken down cars on my front lawn.....:wink:



If it would help lower my property taxes, I would park 10 of them on my front lawn. :wink:

bjstewa 04-09-2007 11:19 PM

Quote:

Originally Posted by miked918 (Post 39418)
I've heard that there is no additional property tax assessed when you remodel your basement, like there would be if you add an addition.

I know it's true in Michigan (where I live), but haven't found if it's generally true nationwide. (Need the info for a work research project.)

I've Googled and have Yahoo'd, but am not finding any source to help.
Any way you can point me would be greatly appreciated.
Thanks.
Mike

I'm sure it varies greatly by where you live, but I live in Wisc. and we are automatically re-assessed by the estimated cost of the project being added to our current property tax assessment. Because they use cost (vs. value added to the property) it is a great benefit to being a DIY'er.

For example, I am in the middle of a basement remodel project and I am saving 15-20k by doing it myself. If I paid someone to do the work my taxes would go up by about $600/yr as opposed to the $100/yr increase I am expecting.

Ben

handy man88 04-10-2007 07:48 AM

Quote:

Originally Posted by bjstewa (Post 40276)
I'm sure it varies greatly by where you live, but I live in Wisc. and we are automatically re-assessed by the estimated cost of the project being added to our current property tax assessment. Because they use cost (vs. value added to the property) it is a great benefit to being a DIY'er.

For example, I am in the middle of a basement remodel project and I am saving 15-20k by doing it myself. If I paid someone to do the work my taxes would go up by about $600/yr as opposed to the $100/yr increase I am expecting.

Ben

There are opportunity costs associated with finishing it yourself though, such as time away from other activities and time before being able to enjoy the basement. The saying usually is a certain percentage of the money saved is usually needed to pay for therapy or x months off your life span. Doing home projects is fun, but it takes away from other things.

sleepy23 05-07-2007 09:16 PM

you guys dont actually report upgrades and additions do you? I mean if you do something big that requires additional insurance..i can see that, but i never invite the tax man over for a look around my house.

AtlanticWBConst. 05-07-2007 09:18 PM

Quote:

Originally Posted by sleepy23 (Post 44074)
you guys dont actually report upgrades and additions do you? I mean if you do something big that requires additional insurance..i can see that, but i never invite the tax man over for a look around my house.

What if...... the IRS is watching ............the internet????


:eek: ................


You just sent out your invitation.............:wink:

Zero Punch 05-07-2007 11:16 PM

Quote:

Originally Posted by sleepy23 (Post 44074)
you guys dont actually report upgrades and additions do you? I mean if you do something big that requires additional insurance..i can see that, but i never invite the tax man over for a look around my house.

If you need to pull permits they know.

J187 05-08-2007 08:00 AM

I'm still strugling to see how its a tax "benefit" I'd better describe it as a tax slap in the face :biggrin:

AtlanticWBConst. 05-08-2007 08:05 AM

Quote:

Originally Posted by J187 (Post 44122)
I'm still strugling to see how its a tax "benefit" I'd better describe it as a tax slap in the face :biggrin:

I don't believe there is inherently any real tax benefit, other than any energy savings write offs that may come of it.
i.e. - New energy efficient windows & additional insulation.


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