WASHINGTON STATE HAS NO STATE IN COME TA X U NLIKE CALIFORNIA , WHERE RESIDENTS ARE TA XED U P TO 1 3 . 3%
The Tax Implications of Second-Home Ownership | Whether a legacy home is the
homeowner’s primary residence and not a second home or vacation home has important implications for federal and in some jurisdictions state taxation of the property. The prospective homeowner should consult a qualified tax advisor in relation to tax planning for such a purchase, as well as categorization of any expenses and computation of business taxes relevant to any contemplated commercial use of the home or grounds. Given that Washington State has no state income tax unlike California, which has one of the highest income tax rates in the US, the San Juans have been a popular financial safe harbor for residents living more than six months a year in the Pacific Northwest as a resident of Washington but maintaining a second home in California. Consider for some, the tax savings alone could easily pencil a luxury yacht while enjoying the best of both worlds. The property tax rates and assessments can be extraordinarily high with a large legacy home, and these vary widely from one jurisdiction to another. Property taxes in San Juan County are levied at different rates by tax code area, and vary from one area to the next. In Section II, we will compare taxes paid on legacy homes for sale in the San Juans with those paid on comparable homes sold and for sale on Long Island, as part of an overall look at the current prices, features, and the cost of ownership6.
H F. CORMORANT BAY ESTATE A grandfathered “private” beach and westward orientation are enviable property attributes.
W W W. LEG ACY H O M E SRE P O R T.CO M
G & H: MADRONEAGLE Artisanal details abound inside while a natural sanctuary awaits outside.
Published on Aug 4, 2016
LEGACY HOME REPORT A legacy home is most often an expansive home, large enough to accommodate an extended family and guests, with fea...