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SHOULD WE PAY PROPERTY TAXES FOR RENTAL PROPERTIES

Posted on: 21st Oct, 2007 06:59 am
Hello, I have 2 rental homes and the Property Taxes have arrived. They are ridiculously high (living in Southern CA). One of my co-worker's wife who is in Real Estate with 5 rental properties had adviced us "not to pay for the property taxes. If you plan to sell your house next year, let the proceeds from the sale pay for the property taxes."

I know one of the possible ramification of doing this is we will be behind on our property taxes, therefore incurring penalty. What do you guys feel about this, has anybody have the same kind of experience? Please advice.
That might be the worst piece of advice I have ever heard.

You could also hit the lottery, you never know. The logic behind her recommendation is that IF you sell, the new owners will pay your overdue taxes. Now really, would you pay someone elses taxes for them? You are going to have to be able to cover them all.
Posted on: 21st Oct, 2007 07:53 pm
Hi,

I think, first of all what you need to do is, find out the tax amount which you are saying is ridiculously high, is right or not. If you see that the tax amount is correct and there are no mistakes, you should pay the tax as soon as possible. If you don't clear the tax, you will find problem when you want to sell the property.
Posted on: 21st Oct, 2007 10:43 pm
Hello Benz,

I think it is better to clear off the unpaid property taxes. It is not only penalties that you need to give but this might lead to serious trouble later.
Posted on: 21st Oct, 2007 10:54 pm
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