Can I merge Two Twins into a single Duplex?

Question

I am an investor in PA who owns two twin homes. Essentially it looks like a duplex. However it is not, as it is two separate parcels, each with their own taxes. Is it possible to Merge the properties into one duplex? I would like to do this for tax purposes. Similar homes that are true duplexes in the area, with similar sqaure footage, bathroom and BR numbers have half the tax burden. Thanks to anyone who can help provide some clarity or advice.

Matt Devincenzo · Answer

So two separate items 1) deeded fee or common ownership 2) tax or assessor parcels. Each State has different rules re: what happens to your ownership structure if you tax merge parcels.

In CA any legal mapped parcel can (baring a few exceptions) always be segregated later without another subdivision action unless it is remapped as a single lot. Joining the tax parcels is not the same as remapping the lots. It's common to find properties with one tax parcel but multiple lots and segregate them to build additional homes without a new subdivision process being required.

I know from recent research that is not always the case in PA specifically. There are situations (I can't recall what) that in PA where the lots cannot be segregated later. So the big long term question to a land use attorney or good surveyor is, if you do this can you segregate the parcels later or do you have to resubdivide them? That would be what you potentially are costing yourself value wise if you do this.

Alex Bekeza · Answer

@Chris Springer While you might be alleviating some tax liability somehow (although I'd imagine a city signing off on this would only do so with a tax reassessment which would defeat the purpose) I would say that the appraised VALUE would be much less as one duplex as opposed to two SFRs in the majority of scenarios.  I've actually seen very lucrative deals come by subdividing parcels even on attached units where each side becomes worth much on their own than if they were sold as one. Hope that makes sense.  Every market is different, it depends on your comps and what's typical in your specific area.

Wayne Brooks · Answer

They have a lower tax burden because the market value is less when combined as a duplex.....if that matters to you.

Chris Springer · Answer

Helpful responses. The concensus is to maintain the properties as two attached twins. I appreciate the feedback.

Chris Springer · Answer

That is a good point. I wonder if the longterm ramifications of joining the two properties (if at all possible) would have a greater negative impact.

Can I merge Two Twins into a single Duplex?

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