Make sure to consider all taxes (property, income and sales) when relocating!

Excellent.  That first buyer shoulda' had a real estate agent who would have alerted him of the difference between new home taxation on land and the "after settlement" assessment which would include the improvement. 

All good analysis and why we recommend that buyers seek tax advice from a tax pro before making major decisions in areas new to them.

Taxes? Down here in Florida we don't pay income tax and compared to most states, our property tax and sales tax is really minimal.

Good thing to keep in mind when dealing with anyone relocating into and out of our areas.  I'm not familiar with the different property taxes in various states (other than mine), so this is another area to learn about!  Thanks for the post.

Jim, excellent advice. Tax implications can be a big surprise when purchasing or selling property. Deferring taxes through a 1031 is a great benefit for investors. Referring them to a 1031 expert is a must. Good Post!

Thanks for the reminder. This is important for investment property as well...

Jim, excellent info and great topic. Here in MA, some towns offer "residential taxes exemption" (Brookline), while others don't. Taxes vary greatly from town to town, but the exemption is not always taken into consideration. You have to apply for the exemption (as a resident of given town), it will not be given to you automatically. Most listing agents make a note  if taxes include residential exemption, but some don't, and if buyers agent is not aware of that, and buyers doesn't look it up themselves - some people end up paying twice more in taxes. 

Jim - It is extremely important for people looking to purchase in a different area (and often in the same area) to contact people who are familiar with the tax rules in the area and jurisdiction where they will be purchasing for property taxes and sales taxes.  If a person is purchasing a property in a different country there are also additional income tax considerations that people in the same country may not need to take into account.  Of course, there are also US estate and gift tax issues among others that may need to be considered as well.

I think that alerting buyers and sellers to potential long term costs is part of our job, however, it is not part of our expertise to give advice on such things.  Recommending an accountant or financial advisor is the smartest move for you and for your client.  Thank you for the information.

Jim - Another thing that people need to be aware of is the tax that they will pay when they sell a home in some states.  I have run across several potential listing clients who were surprised that they had to pay a 1.75% sales tax when they sold their home here in WA.  Many states do not have that tax.  BUT, we don't have a state income tax so the tax money has to come from somewhere!

Questions that need to be asked when relocating to another state...agents need to keep buyers/sellers informed...no one wants or needs any bad surprises..

This is so true......in our state no income tax but higher property taxes....across the border income tax and way low property taxes. You just have to take everything into consideration to make an informed decision. 

Ditto to Barbara-Jo post #3.   

Florida has NO State Income Tax.

It has become much easier to challenge your Property Tax Assessment - the impetus to prove value is upon the Government, not upon the property owner.

Your Principal Residence / Homestead property tax is Constitutionally protected from dramatic increases.

Corporate Taxes are targeted for reduction, and ultimate repeal, by our very conservative State Legislature, and by our new conservative Governor Rick Scott.

There is NO Sales Tax on Food or Medicine.

Jim:

Even though we don't give tax advice, the buyer's agent should have advised his client of the property taxes he would be subject to.  That seems to me to be part of disclosure information the buyer should receive.