How do you handle paying property taxes on flips?

How do you handle paying property taxes on flips?

Atlanta, GA · Member since 2021 · 163 posts · 57 votes

Hi BP - 

I am closing tomorrow on a property that I recently flipped. I purchased it in July. So total hold time was from July thru November. 

I just got a bill from the county for the property taxes ($713.82) 

I went online to pay, and saw the $713.82 bill amount was for the entire year of 2022. 

Am I stuck with the whole year's worth of property taxes even having owned it for only 5 months??? Or is it like insurance where you pay for 6 months of premium, and then they will send you a check if you don't end up needing coverage for the whole 6 months?

Thanks!

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Taylor DaschBusiness Member
Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
3y

When you closed, the title company should have prorated the tax that the sellers owed on the property through the time they were living there. So when you sell, the taxes will be prorated for the whole year since they were previously prorated

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  • Taylor DaschBusiness Member
    Real Estate Agent · Temple, TX · Member since 2022 · 1k+ posts · 700 votes
    3y

    When you closed, the title company should have prorated the tax that the sellers owed on the property through the time they were living there. So when you sell, the taxes will be prorated for the whole year since they were previously prorated

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    As Taylor said, this handled when you close.  The same would have been done when you bought it.

  • Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes
    3y

    Call your title rep. They will probably tell you to ignore the tax bill because it will be squared away at sale. You will see it on your settlement statement.

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y

    Its not your entire bill, title co will take care of it 

  • Lender · PA · Member since 2019 · 533 posts · 461 votes
    3y

    @Bob S. speaks the truth. Your bill will be prorated so long as your contract has such a clause. The title company will make the adjustments on your settlement statement. Do not pay the bill! E-mail a copy to your agent and the title company. Good luck and keep moving forward!

  • Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Steven Goldman:

    @Bob S. speaks the truth. Your bill will be prorated so long as your contract has such a clause. The title company will make the adjustments on your settlement statement. Do not pay the bill! E-mail a copy to your agent and the title company. Good luck and keep moving forward!


     You are a bit more detailed than me LOL, 

    Happy Thanksgiving ,

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

    When you purchase or sell a property - the title company is responsible for pro-rating property taxes so you are only responsible for paying the taxes during your ownership period.

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