We all (or some of us) remember learning about the Boston Tea Party that ultimately led to the American Revolution. Taxation without representation was the war cry of the Bostonians who dumped hundreds of crates of British tea into the Boston Harbor over 200 years ago. Unfair or unjust tax policies gave the reason for Colonists to rebel against their absentee landlord. Although there is no harbor in Las Vegas, there is the notion that paying unnecessary taxes is for the birds.
Nevada is one of seven states in the union that does not charge its residents or businesses an income tax. It is a pleasure to live here in Las Vegas, but we do not have to pay money to the state to do so. If you share a similar view on taxes, Las Vegas real estate can help.
Las Vegas Real Estate Taxes
When you buy Las Vegas real estate, whether it is for commercial, residential or investment, there are certain tax benefits you can take advantage of almost immediately. Proof of residency is required for some, so get your identification first.
Right away you’ll notice how nicely no personal income tax for social security benefits or income from retirement accounts pads your bank account. Did you ever wonder why Las Vegas is such a retiree mecca? Yes, world-class golf, but you can schedule more tee times with more money folded in your pocket.
Other ways to stretch a dollar are no sales tax charged for groceries or prescription medicine. Here in Las Vegas there is no inheritance, gift, estate, or inventory tax either.
The non-income tax aids folks who have passive revenue streams produced in other states. If you have income-producing properties in Michigan and move to Las Vegas, the money you receive from the rental property will not be taxed. For those individuals who work in remote offices from home or freelancers of all kinds, Las Vegas lets you keep more of your earned dollars.
Here is a fun fact most people do not realize: if you itemize deductions, the IRS allows you to deduct your sales tax or your state/local income tax. Since there is no state/local income tax in Las Vegas, you can deduct sales tax on your Federal return. The IRS even has a page on their website that will help you calculate the estimated sales tax amount. Las Vegas state and local sales tax combined equal 8.1%, think about how nice it would be to get that back or reduce your Federal tax bill by that much?
Qualifying residents might see a rebate of up to 90% of their property taxes. These parameters entail achieving an age of 62 years or more and an income of $28,677 or less. Applicants should fill out the necessary paperwork between February 1 and April 30 of each year.
A state law provides a 3% cap on property taxes for all owner-occupied primary residences in Nevada. Owners of rental property, including apartments, can apply for a similar abatement. Qualifications depend on the amount of rent charged to tenants. You cannot exceed the maximum, rule number one.
For those Las Vegas homeowners who take advantage of the 294 days of sunshine for reasons other than recreation, there is good news for your property tax bill. If you have or install a solar panel system on your home or land, the value of the energy generator is 100% tax exempt from your property taxes. Plus the increased value of your home is exempt from taxation. Tack that on to lower energy bills and a reduced carbon footprint, and going solar has some tangible advantages.
Taxes in Las Vegas
The state of Nevada does not collect personal property tax on cars or boats. There are registration fees associated with private vehicles, but you do not have to go to the assessor’s office, stand in line and dole out money for the privilege of owning a car or boat.
Live entertainment tax is something special to Las Vegas, thanks to the abundance of live performances in the city. Las Vegas was built around the entertainment industry, and now that industry is repaying the marquee spaces by generating revenue for the state and local government. $139 million in 2014 live entertainment tax found its way into the collection baskets.
How does the state stay afloat? Gaming taxes on slot machines and tables in Las Vegas contributed over $718 million dollars to the local government’s revenue in 2014. Hotel taxes totaled $620,917,512 for that same year. Sales tax on tourist’s shopping helps as well.
If You Hate Paying Taxes, Contact Me Today!
Let me know how I can help you with your real estate goals.
Viva Las Vegas!