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Updated over 6 years ago,
Primary to rental conversion - property tax snafu
Hey fam!
So we are discussing converting our primary to a rental. I just found out in the state of SC if you rent your home for a period of longer than 72 days, you are subject to the higher property tax rate for the ENTIRE YEAR.
The yearly tax difference on this property is $800 as primary and goes up to $3500 as a rental. (Confirmed with tax assessor)
It will cash flow positive due to our situation (ran the numbers multiple times through calculators) and even with the increased tax liability we are good so I don’t need help on that front.
However I just learned that if we convert our house to rental anytime this year we are subject to paying the FULL YEAR of property taxes at the higher rate.
Has anyone else encountered this?
Do they not prorate based on how many months it’s a primary vs rental?
I just don’t want to be in trouble with the tax man by missing something and I also don’t want to pay thousands more than I have to...
Any thoughts would be appreciated!