Property Taxes and Furnished Houses

[TomW]

If one buys a furnished new home, or even a furnished older home, or one that included a golf car, etc., are those items backed out on the closing statement? If not, it seems one would be paying property taxes on the furniture, golf car, or any other property included with the sale that increased the price, forever. Can anyone comment on this from knowledge or experience?

[Ceafolks]

Great question Tom W. I will be awaiting an answer from the more experienced folks.

[villages07]

TomW.... I don't know the specific answer to your question, but, when I talked with the Sumter County Property Appraiser's Office about how they do after sale, follow on appraisals..... she said, they start with a base value for the model (e.g. Lantana) then do add ons for structural enhancements (birdcage, pool, etc) and lot size/view premiums. This would imply that their appraisal process is somewhat independent of the price you paid for the home and what's inside.

[l2ridehd]

Always make sure you do two transactions. One for the home and another for the additional perks. Golf cart, furniture or any thing else that is not considered as real estate. Get a separate bill of sale for those extras.

[OpusX1]

When I sold real estate we had a chatel contract separate from the real property contract. I would make sure if you bought a furnished place or one that included a golf cart that there were seperate contracts for those items.

[TomW]

V07: When I spoke with the Sumter Co. Tax Collector's office about a month ago, they indicated the first number in their calculations was the sales price. I didn't think to ask about separating real and personal property at the time. But, I'm sure that sales price is key in the property tax calculation.

OpusX1: This was in TV, right? No?

[OpusX1]

I sold Real Estate in Ohio for 12 years. No longer have my license.

[Carla B]

When we bought a used condo in Palm Beach Co. 6 years ago, the appraiser sent a questionnaire asking us to "swear to" the sales price and specify the personal property, if any, included in the sales price. We assumed this was so they could "back out" necessary items.

[Peazoup]

I bought a furnished home and requested that the furnishings be a separate charge. Although the real estate agent was paid commission on the whole package, my sales price for home only was asking price minus about 10% which was the furnishings estimate. If the sales price is one lump sum, you would be paying property taxes on furniture.

[rustyp]

I purchased a house in New York State that was furnished. The way it worked was the furnishings were seperated from the house. But watch out for the catch 22 - The furnishings then are subject to sales tax, just as if you are buying a used car. The house price for property tax purpose is the total sales price minus the furnishings. BUT here in NYS that price must fall within the assessors computer program estimate for that property. There is no beating the system here. I did challenge this situation since my honest purchase price did fall below the assessor's estimate. The answer - "you got a good deal" but the estimate stands.

[Flying Dutchman]

Whether you are the Buyer or the Seller in Florida you could be taxed on the golf cart and furnishings if you don't break them out. If your agent doesn't suggest this to you on the front end, talk to the broker or needs be, find a better agent. Don't forget the role of the higher sales price in the property appraisal which is a tax you will live with for, hopefully, many decades.

[jkomoros]

We just moved in last Friday into a new home in Amelia that was furnished with Southern Lifestyles furniture. The cost of the furniture was taken out of the mortgage and we paid that price separately and up front.