Help! Atlanta Taxes!

5 Replies

Sold a home in LA for a clean 120,000$ profit after closing costs (lived there for 2 years!).

But, had to buy a home in Atlanta Ga in a hurry for personal reasons. Because of occupancy rules, I had to get the home as an investment property on my loan even though I plan to live there.

Quick question:

what are the different tax implications for investment vs owner occupied in Ga? Can I claim Owner Occupied even though its a loan for an investment? Our ESCROW is asking for way more money for taxes than it seems I should pay vs online tax calculators. Any info would be awesome, I looked it up extensively and cant figure it out!

Thanks BP! 

If it is your primary, then yes, you can claim property taxes and mortgage interest as potential itemized deductions. Doesn’t matter what kind of loan you have.

@Lukas Koube I'm not sure why the house is considered as an investment when you're going to live in it.  I assume you're accountant or lender gave you advice.  You will apply for homestead with Fulton County and if asked will need to proof, such as a drivers license and or utility bill.   

Welcome to Georgia

Escrow needs to be analyzed by an accountant. CPAs never will analyze it for you, that's why you need an "in-house" accountant to do it for you.

I do not know the rules for GA, but from the sound of it. % of the sqft is owner-occupied and the rest is the investment.

@Lukas Koube, welcome to Atlanta.

@Bob B. Lukas likely had to do this as an investment property because you were not going to be living in the house within 60 days of closing (a condition of many primary loans).  

@Lukas Koube The giant tax difference is likely a combination of things. I know that Fulton County just did a giant "tax thing" where they tried to hike up all of the property taxes significantly this year. There was a ton of back lash (surprise), so they're adjusting them (and still not caught up).  Also, as mentioned by Bob B. - applying for the homestead exemption will help. :) 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.