Free canadian tax software
However, when taken out of current use, the owner at that time will have a $25,000 tax bill (or more, if the then-current market value has increased) that must be paid before clear title can be conveyed. free canadian tax software Tax. Even if the current owner does not plan to develop the property, the $25,000 liability looming eternally over the property, (which will only increase over time) will undoubtedly reduce market values if the property is ever sold. Triggering the taxOnce in the current use box, there is no easy exit. Taxpayers cannot simply elect to take their land out of current use. free canadian tax software 1040ez tax form. Under RSA 79-A, the land use change tax is only triggered when:Actual construction begins on the site causing physical changes in the earth; Topsoil, gravel or minerals are excavated or dug from the site (with some exceptions); By reason of size, the site no longer conforms to criteria established by the Current Use Advisory Board. Issuance of final approvals by the planning board does not trigger the tax. Only the developer's actions in commencing work on a project will trigger the tax. free canadian tax software Tax liens. Timing of the tax creates tension between the owner and the assessor. Often, the town wants the tax stretched out over time, to tax future increases in value resulting from betterments and the market success of a project. A developer often wants the tax paid immediately for just the opposite reason. Each project must be reviewed carefully to plan the events that will trigger the tax in a way that minimizes or delays the impact. Topography, frontage, lot sizes and the like will determine the best timing for payment of the land use change tax - either at once or in increments stretching the liability over time. Recent controversy over the land use change tax has focused on the impact of betterments. The issue here is whether the value of a road, utility system or other improvements in a project add value to the land for determining the land use change tax. Going back to our Concord example, if the developer installed a $100,000 sewer line to the property, would the valuation be increased to $350,000?Prior to February of 2001, the rules of the Current Use Advisory Board specifically excluded betterments in calculating value. In Appeal of Estate of Richard Van Lunen, the New Hampshire Supreme Court upheld the rule excluding betterments from valuation. However, on February 22, the Current Use Advisory Board changed its position and adopted a new rule, Cub 308. 01, stating that valuation shall be based upon ". . . the highest and best use of the land, including the value of all betterments serving the land. " The Current Use Advisory Board also adopted a rule defining betterments, Cub 301. 01, to include roads, water lines, sewage lines, utility lines or other physical improvements. This rules change will create substantially greater tax exposure, and has stirred some controversy. A legal challenge to the rule is expected. In the meantime, great care must be taken in starting work on a project to avoid having ill-timed project expenditures for betterments drive up the land use change tax penalty. There may be one bright spot.
Free canadian tax software
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