Hi, If improvements are made to a rental property and the cost is given on the income tax form, for example: Form asks: "Any property improvements?" Remodeling _______ Room additions _______.
So my question is if the cost of improvements say $50K spent on remodeling, will there be an increase to the property tax on the rental property because $50K on remodeling was reported on the tax form question?
And if the $50K spent on remodeling does increase the property tax on the rental property, what is the use of reporting it as depreciation? One will save on depreciation but pay more on property taxes for 27.5 years. (noting property taxes already go up every year in its self? Seems like a loose loose situation. Maybe I'm getting it wrong, Can anyone clarify this for me?
