Every owner of a property must pay the property tax of his real estate in November in proportion to his possession on January 1st. This amount is approximately 2% of the value of the property estimated by the tax authorities. You should know that this calculation is based on a weighted average of the transactions recorded the previous year in the building itself or in the co-ownership in which the property is located and can vary for the same locality according to the address of the property.
The possibility to deduct from taxes not only all the expenses related to rental management, property taxes, a flat-rate amount of $ 4000.00 by LLC as well as a multitude of ancillary costs (tickets of airplanes, car rentals, etc. …) allows most often not to generate tax on rental income and create an artificial tax deficit renewable year after year.
On resale, the capital gains tax can vary from 15% to 34%, although the significant extent of tax deductions allowed and the rigorous management by a Certified Public Accountant (CPA) of Tax losses accumulated during years of detention, in practice, usually results in the complete exemption of that tax.