Tricky Tax Situation
A quick summary of the situation I am in (I apologize in advance for the long post). I own a property that I am in the process of flipping. The property does not have the real estate tax exemption, so the 2012 taxes (most recent year) are about twice as much as tax exempt properties, many of which are comps for mine. My realtor says this can be a major issue in selling the property. Even though the end buyer will not ultimately pay the non-exempt total, if I don't sell the property by the end of the year (which marks the filing deadline for getting the exemption), the end buyer will have to escrow taxes based on the higher tax level. According to my realtor, this will significantly decrease the interest in the property since in theory, a buyer could buy a more expensive house for the same monthly payment, since they would have to pay more in taxes (just for the first year until they get reimbursed) if they purchase my property.
Has anyone else been in this situation? What is the best way to approach this - do I just have to bite the bullet and hope someone buys the property despite this issue or is there a more active approach I can take? My best case scenario is I close on the property before the year end, but I want to plan in the event this doesn't happen. I realize I can move into the property and file for the exemption but that's really not something I want to be forced into doing.
Thanks, Kyle