How do taxes work on a multi family home?

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How do taxes work on a multi family home?

Joe Matthews
Real Estate Agent · Melbourne, FL · Member since 2018 · 54 posts · 33 votes

Looking into multi family in other states specifically Midwest, New England, Texas and Carolinas. My question is how does tax structure work on multi family homes? Is it taxed as one or taxed per individual unit?

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
5y
Originally posted by @Joe Matthews:

Looking into multi family in other states specifically Midwest, New England, Texas and Carolinas. My question is how does tax structure work on multi family homes? Is it taxed as one or taxed per individual unit?



Depends. But, most of the time as a one property. 

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    5y
    Originally posted by @Joe Matthews:

    Looking into multi family in other states specifically Midwest, New England, Texas and Carolinas. My question is how does tax structure work on multi family homes? Is it taxed as one or taxed per individual unit?



    Depends. But, most of the time as a one property. 

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®4.9242 Reviews
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  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Joe Matthews

    1-3 units is most likely taxed at residential tax rate. While 4+ units is taxed at commercial property tax rate. It’s taxed as one property.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    5y

    are you asking about income taxes or property taxes?

    In general, the answer should be the same though.

    Income taxes - If it is under one tax lot, it would show up as 'one rental' under schedule E
    property taxes - if it is under one tax lot, you should receive one tax bill from each assessor(county, city, school)

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