Property taxes question on MH - Posted by srb (Tx)

Posted by Steve-WA on August 17, 2005 at 15:24:19:

however you want; as you said, there’s no title company involved.

I will often just pay up the year - it ain’t that expensive, it’s a writeoff, and it’s a benefit for the buyer (that I am sure to emphasize!)

Or just prorate their portion, and collect it as a closing cost.

I am managing to pass along some of my costs of transfer as closing costs that they expect to pay, anyway. Never used to - just covered it 'cause it was easy.

Now I’m cheap.

Property taxes question on MH - Posted by srb (Tx)

Posted by srb (Tx) on August 17, 2005 at 15:09:36:

If I buy a MH (treated as personal property) as a Lonnie deal right now, how do I calculate/pay/treat the property taxes on it for this year?

In other words, when I get the title from the seller and he provides proof that taxes have been paid (up until last year), how do you split up the taxes that are due for this year, since there is no title company involved?

The buyer should only be responsible for the taxes for the period of his ownership, right?



Re: Property taxes question on MH - Posted by Mark C Tx

Posted by Mark C Tx on August 17, 2005 at 16:11:07:

I just finished the 3 day training the state of Texas mandates for Mobile home Retailers License.

At the time of purchase, lets say June 2005. You must pay the entire 2005 taxes. Upon selling you can ask for a refund from the County for the remainder of the year after you sell it. Lets say July 05, so you would get a refund from thedate you sell it to Dec 31.

The guy that spoke on this has been in Texas doing Mobile homes for 25 years and he works with the State to do training, he also has smaller training sessions a regular guy can go and learn from after he gets his license. Just do 2-3 deals and make sure you want to do this before wasting the time and money. I am glad I am doing the license, Ilearned a lot.

Anyway, everyone was a little confused the way he explained it and it seems like a lot of trouble. so it seemed the best was to :

Example. Buy the MH June 30 2005, Pay the property tax for the entire 2005. Sell July 15 2005, escrow the taxes for the buyer for the rest of the year, and that way you get the rest of the year back and keep escrowing them until he is paid off your loan, to be sure his taxes are paid.

Actually if you do decide to get into this and do several, it seemed to be wise to get licensed. The state actually mandates you to escrow the taxes during his loan period. Its no real trouble, and it keeps there from being a tax lien during your pay off time.

Or do like Steve says just figure that in on the buying and selling price and don’t worry. But remember the county still wants their money then, and wants you to escrow the taxes during the loan.

Hope that helps.
Or are we all now more confused??

Mark C Tx

comin’ and goin’ - Posted by Karl (Oh)

Posted by Karl (Oh) on August 17, 2005 at 16:02:57:

I usually require a seller to pay taxes through the end of the current year (or deduct it off the purchase price). All current year taxes have to be paid in Ohio to transfer title. So I just make that a requirement when I purchase.

Then when I sell, I usually prorate the tax bill. If my buyer closes on the home in July, they reimburse me back for half of the paid taxes. After all, they’ll be the owner for half of the current year.

Its easy to reasonably explain both positions to buyers and sellers. And more profitable.

Karl Kleiner

Re: Property taxes question on MH - Posted by osupsycho (OK)

Posted by osupsycho (OK) on August 17, 2005 at 15:39:52:

Not sure how it is in Texas but in Oklahoma you have to pay the current years taxes on the mobile home at the time of purchase. In otherwords I have to prepay the 2005 taxes on a home when I get it transfered into my name. My buyer does not have to do this though as they only want the current years taxes paid (unless I buy a home in 05 and sell in 06, ie december and january or a very long holding period). I have been just figure this into my aquisition and holding costs and sell the home accordingly. I am looking at getting a free home soon and this of course will make it not “free” (along with my referal fee :slight_smile: