Great Park Phase 2 Mello Roos

[qwerty]

im ready to do battle again with IC.  MR can be deductible, but most of it is probably not.  Like you said, they should have an automated system to track property taxes but they dont. part of the problem is you cant even tell what the breakout of the payment is. and the IRS says its up to the taxpayer to prove that it is deductible. good luck with that. but even the IRS never audits the property tax deduction
http://www.irs.gov/pub/irs-wd/12-0018.pdf

 

[qwerty]

My understanding was that any tax that is not calculated as a percentage of the assessed value of the property is not deductible

this is not correct. see the IRS link i posted. but you still have to prove what component of MR is deductible which is the tough part.

 

[Rice Vino]

Wow, so maintenance part of MR tax is deductible but infrastructure building part isn't. Learned something from my TI #monitoring addiction today !  ;D ;D ;D

 

[Irvine Dream]

Wow, so maintenance part of MR tax is deductible but infrastructure building part isn't. Learned something from my TI #monitoring addiction today !  ;D ;D ;D

I learned something too.  Thanks Qwerty for the link

 

[Irvinecommuter]

im ready to do battle again with IC.  MR can be deductible, but most of it is probably not.  Like you said, they should have an automated system to track property taxes but they dont. part of the problem is you cant even tell what the breakout of the payment is. and the IRS says its up to the taxpayer to prove that it is deductible. good luck with that. but even the IRS never audits the property tax deduction
http://www.irs.gov/pub/irs-wd/12-0018.pdf

I guess you are technically correct but IRS doesn't seem to care.

The tax board estimates that California is losing about $200 million a year because property owners are taking real estate deductions they are not entitled to.

The U.S. General Accounting Office says overstated real estate deductions are also contributing to the nation's tax gap. In a 2009 report, it found that taxpayers in two large counties chosen somewhat at random - Alameda and Hennepin County, Minn. - collectively overstated their deductions by somewhere between $23 million and $46 million. (Alameda accounted for about 95 percent of the overstatements.)
It acknowledged that taxpayers "face challenges determining what real-estate taxes they can deduct" because "neither local-government tax bills nor mortgage-servicer documents identify" which charges are deductible.

It recommended that the IRS change its guidance to taxpayers, revise the way it audits this deduction and find cost-effective ways the IRS and local governments could show taxpayers which charges are deductible.

"The IRS basically ignored that GAO report, they didn't do anything with it," Rodriquez says.

http://www.sfgate.com/business/article/Calif-drops-property-tax-deduction-campaign-3486711.php

 

[aquabliss]

Looks like this is about 10%-15% higher than current GP Mello Roos.  I think somewhere I have the chart for current GP.  I can double confirm that this is based on HOME sq footage not lot size. 

Glad I got in now before I was priced out forever! 

 

[test]

my current columbus square house would have a 9K MR in the GP2, compared to my 6.5K. and i thought 6.5K was high.

MR is based on House square footage.  I found it interesting that Lennar's Rosemist Plan 3 MR put it in a lower MR bracket than it's competitors , Hawthorn Plan 3 and Harmony Plan 2.  Lennar has ties to Five Point right? 

Also Columbus Grove already has $9 to $10 K MR,https://www.redfin.com/CA/Tustin/16610-Honeybee-Dr-92782/home/7202550
MR is not tax deductible but everyone I know takes the deduction.  Wonder when the auditors will catch on to it.

Already covered by Irvinehomeowner

OK, I will need to check that.  Could you please point me to the thread.  My understanding was that any tax that is not calculated as a percentage of the assessed value of the property is not deductible

Come on SEARCH it's deductible stop clogging up this thread with nonsense.
https://www.ftb.ca.gov/individuals/real_estate_tax_deduction/index.shtml

 

[notTHEoc]

Anyone know expected grand opening date?

I like this location. Close to future school, park, retail. Not sure how polluted this part was though.

 

[jmoney74]

Thanks. Familiar with the area and their high mella roos. How much higher are these then the 1st section of the great park? When you really think about it, that is an insane fixed cost to lump onto your house. Add in the fact that the homes will likely be pretty pricey and you are talking about an effective tax rate that I presume will be over 2% (see following scenario). Presuming you had a $1M home on a 5K lot (which is probably pretty conservative), you are talking a fixed annual tax bill of $25.6K (approximately) or an effective tax rate of 2.56%. That is freaking absurd.

these are also max amount?  So start at a lower rate and go 2% until it hits that? 

 

[jmoney74]

You can deduct MRs.. doesn't mean that it should be deducted.  The IRS doesn't care.  CA board did care but had to drop it. 

 

[aquabliss]

Anyone know expected grand opening date?

I like this location. Close to future school, park, retail. Not sure how polluted this part was though.

Don't do it - too much TCE underground there.  If you like the location, by in PP now before they're all sold.  Close enough to park and retail, convenient to toll road and fwy, etc.

 

[bones]

[asdf

 

[Vinster]

Columbus Grove is actually split between Tustin and Irvine (though all in IUSD).

The Irvine houses had the Mello-Roos bond refinanced by the City of Irvine last year and got the rate reduced without a change in the expiration.

For example, 54 Desert Willow got a 28% cut from $6472 to $4647.

http://tax.ocgov.com/tcweb/search_parcel.asp?streetname=54%20desert%20willow&t_city=&t_parcel_no=43440211#
https://www.redfin.com/CA/Irvine/54-Desert-Willow-92606/home/7215161

 

[irvinehomeowner]

So actually, for MRs... lot size doesn't matter.

And not to support test too much, but I do remember CA dropping trying to determine what is deductible and what is not on the tax roll and the Fed supporting their methodology for purpose of income tax deductions.