Rental property improvements/depreciation and property tax increase

[Amdano]

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?

[Carl]

will there be an increase to the property tax on the rental property because $50K on remodeling was reported on the tax form question?

The IRS has nothing to do with your property taxes. Your property taxes are determined by your local county property tax appraiser. The property tax appraiser could (literally) care less what you report on your federal income tax return.

what is the use of reporting it as depreciation?

Federal law doesn't give you a choice. Federal law says you are required to depreciate your property, along with any qualified property improvements.  If you don't depreciate the property improvements, then in the tax year you sell or otherwise dispose of the property, you'll be inviting the IRS to audit you with open arms. The taxes, fines and penalties will have the potential to wipe out any gain you may realize on the sale.... yet you'll still pay taxes on that gain because fines and penalties are not tax deductible.

Seems like a loose loose situation.

No disagreement there. If the can't shove it down your throat now , they'll skewer it from the other end later.