Sunday, July 13, 2014

Land vs. Buildings

Another revelation or realization came to me . . . I know, for many of you it's a "doh moment," but for me it's revelation knowledge.  Did you know, the tax on land is minimal, while the tax on "improvements" i.e. buildings [improvements] is the expense and government money maker?  The tax on unimproved land or land with small or mobile buildings pales in comparison to the tax debt for large structures.

At the first homestead, along with my home, there was a welhouse, it was a fine wellhouse, but a permanent structure and I had a barn built.  The taxes doubled . . .  When I moved I was a bit smarter this time around.  I did my homework and although the well box is not nearly as attractive as the wellhouse on the old place, it is functional, and everything I used to keep in the wellhouse now fits neatly into the milking parlor, which happens to be a portable building.

As for a barn, heat rises . . . I found the most wonderful large wooden boxes, about 4' X 4' at a great price, and the goats just love them.  I can move them, rather than shovel them out for cleaning, and since they are just about a foot taller than the goats, the body heat is kept at "goat level."  Since they can be moved, they are not a permanent structure according to the county assessor.

The simple fact of the matter is I pay less real estate tax on 10 acres than I did on two.  I'm in the same county, but I am off the beaten path, so I also don't have road frontage.

If you're thinking about divesting of mainstream, consider the all the variables for maximizing the investment and maintaining a tax liability.  Shelter is important, but most of us exceed our actual need.  The land is producing fruits, vegetables, and providing grazing for a supply of meat, milk, and eggs.  The house, on the other hand, doesn't produce anything, but dust.

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