Investing in real estate is also one of the favorite financial retirement options. Regular rental income may flow from a good property or you can always sell a nice property in a good location. The success of this investment decides the quality and cost of the acquisition property and the choice of an optimal mortgage. But property owners have to count on paying real estate tax. "Real estate tax is paid by owners, people preferring rent or co-operative housing, real estate tax does not apply," adds Emil Broz (FinFocus).
The tax is paid by the end of May
Real estate tax for 2017 is payable by the end of May if the calculated tax is $ 5,000 or less. If the amount of the tax is higher then it is possible to pay the tax in two installments, the first by the end of May and the second by the end of November. Even if the limit is exceeded, a lot of people pay a one-off tax. Real estate tax for 2017 is set as of 1 January 2017 and is always valid for the entire calendar year. "The real estate tax for 2017 must also be paid by people who sold their real estate in the first months of 2017 and the buyer will pay real estate tax for the first time in 2018," explains Emil Broz.
The tax return is only given once
People who buy real estate this year do not have any worries about paying real estate tax in 2017. By the end of January 2018, they will file a tax return for real estate tax and pay the tax for the first time for 2018, that is May 2018. The amount of real estate tax depends, among other things, on the size of the property, the type of property and the relevant coefficients. E.g. For an equal size apartment, the calculated tax liability in individual cities may be different. "The tax return is submitted only once and in the following years only when the documents for calculating the tax on immovable property are changed, the tax authorities send postal bills each year to pay the tax," Brož adds.
Real estate co-ownership
When a tax return is filed by at least one of the co-owners of the property for the co-ownership of the real estate by the end of January, then each co-owner is required to file a tax return for immovable property for his own share of the immovable property. If the tax return is filed by one of the taxpayers owning the same immovable property, that taxpayer shall be deemed to be a common representative unless the taxpayers elect a joint representative. The tax return is filed at the local financial office in which the property is located. In practice, the local tax office for filing a tax return for real estate tax and payment of real estate tax may be different from the competent tax office for filing a tax return for personal income tax and payment of income tax for individuals. "A common agent is therefore advantageous, for example, if the property owns more members of the family and lives in different corners of our country, the tax affairs associated with the property are then settled by a member of the family living in the region," explains Emil Brož.
Source: tz, edited editorially