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  #1  
Old 2009-02-22, 11:20 PM
paibrah paibrah is offline
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Default Total cost of the house that is reported to the city

I was wondering if anybody can help me out.

A buddy of mine said if you do not include the upgrades cost with your mortgage then when the mortgage bank submit the final paper to the city to calculate the tax it will only be the cost of the house and not the upgrades (which saves you on tax)
For example if the house is $268,900 and upgrades are $8000, instead of adding the upgrades cost just pay them separate, the city will value your house at 268,900 instead of 276,900 until they reassess your house later down the road.
Would it be better to pay the upgrades separate (to save on tax) or added on to the mortgage because its only 8000 compare to 20000 in upgrades?

Thanks
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  #2  
Old 2009-02-23, 12:04 AM
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GregS GregS is offline
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Your purchase price has very little to do with the value of the home.

Your house will be valued at whatever MPAC assesses it at.

http://www.mpac.ca/pages_english/pro...s_property.asp
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  #3  
Old 2009-02-23, 10:02 AM
paibrah paibrah is offline
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Well I bought in Riverside south and moving in June, I was wondering should I add the upgrades to the mortgage to save on tax or just pay it separate, does it even matter
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Old 2009-02-23, 10:30 AM
Edgeware Edgeware is offline
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Quote:
Originally Posted by paibrah View Post
Well I bought in Riverside south and moving in June, I was wondering should I add the upgrades to the mortgage to save on tax or just pay it separate, does it even matter
It doesn't matter. They just look at the price for similar houses in your neighbourhood and base it off that (it's way more complex actually but that's close enough). There is no connection to what you paid for the house.
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Old 2009-02-23, 10:34 AM
S and B S and B is offline
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And how exactly can you get these comparable assessments of other homes in your neighbourhood? I've looked at the MPAC website, and they do it free of charge, but I can't seem to find out how you actually get the assessments.
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Old 2009-02-23, 10:46 AM
Jenny1975 Jenny1975 is offline
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If you sign up to AboutMyProperty you can view the detailed assessment for your property, as well as look up comparables. Obviously there will be a time delay for new properties, but you can probably still look up fairly recent builds in your neighbourhood. From the FAQ page:

What kind of information can I get through AboutMyProperty™?

Property taxpayers can get the following reports free of charge for each property they own:

* One Property Profile Report on your property available on your "AboutMyProperty™" page. The Property Profile Report provides you with detailed property assessment information for your property. For residential properties this includes: assessment roll information, site information, recent sales information and structural information.
* A Properties of Interest Report compares your property with up to 24 other properties of your choosing. The Properties of Interest Report will help you compare assessment information for similar properties to determine whether your property's assessed value is accurate. The report includes address, current value assessment, sale and site information, as well as residential structural details (e.g. square footage).


http://www.mpac.ca/pages_english/pro...operty_faq.asp
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Old 2009-02-23, 12:15 PM
paibrah paibrah is offline
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So Edgeware

Are you saying then when the bank submits the final paper work to the city with the total value of your house that doesn't matter, They will determine the tax based on other homes and also whats around you correct?
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Old 2009-02-23, 03:07 PM
Edgeware Edgeware is offline
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Quote:
Originally Posted by paibrah View Post
So Edgeware

Are you saying then when the bank submits the final paper work to the city with the total value of your house that doesn't matter, They will determine the tax based on other homes and also whats around you correct?
Yes. The MPAC inspector came around to my house to ask a few questions (ie. finished basement, garage size, etc). To save time I offered to just show him the builder contract and he said that he didn't need it as A) he already had that info and B) it's only one part of the calculation. In the end, he assessed my house at considerably less than I paid (basically what the base model would cost).
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Old 2009-02-23, 03:29 PM
Fraggle7th Fraggle7th is offline
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Quote:
Originally Posted by Katherine&Chris View Post
For the first year and a bit you won't pay full taxes immediately until your property is assessed. You will pay taxes only on the land.
And then what? You get one whopping adjustment bill to pay the tax you owe on the house? Or do you get 1-1.5 years of cheap taxes?
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Old 2009-02-23, 05:55 PM
Edgeware Edgeware is offline
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Quote:
Originally Posted by Fraggle7th View Post
And then what? You get one whopping adjustment bill to pay the tax you owe on the house? Or do you get 1-1.5 years of cheap taxes?
The value of your house will be adjusted backwards and you'll have to pay the difference. Start saving for the taxes as soon as you move in because you will have to pay them all ... the city won't be giving you a break I just paid the full taxes for 2007 and 2008 on my place ... they definitely didn't give me a deal!
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