Property Q&A in Minnesota>Question Details

1st Time Buy…, Home Buyer in Minnesota

My family is buying a piece of property- is there a difference in income tax rates if 1 person buys it or if we purchase through a family trust?

Asked by 1st Time Buyer, Minnesota Tue Oct 26, 2010

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This is a common confusion for folks, 1st Time. Income tax is based on your earnings. So, if you're purchasing the property as an "investment" (meaning you're going to have renters) and you'll be receiving INCOME from the property, you'll pay INCOME taxes on that money you get as rent.

However, if you mean PROPERTY tax that you pay based on the County determination of the value of the property, then, no the way you purchase it has no impact.

What WILL have an impact is whether or not you will be living in the property or if you'll be renting it out. That's called Homestead. It will have a slight impact on the amount you'll pay in PROPERTY tax. Good luck!
0 votes Thank Flag Link Wed Oct 27, 2010
This is a question that should be referred to an accountant.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Tue Oct 26, 2010
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