You must pay your property taxes from the same source as when you purchased your property in order to avoid “commingling of funds” which ultimately can lead to a loss in tax advantages. For example, if you bought your real estate using an IRA, you must contact your IRA and have the IRA pay the property tax bill.
If you have partners that means you own a certain percentage of the property. The percentage that you own is the same percentage of the tax bill you are responsible for. For example, if you own 30% of the property and the total tax bill is $300, you are responsible for paying $90 [$300 x 30%].
- Note: All partners should send their bill together in one envelope to the tax collector. The tax collector does not accept partial payments so it is important that all of the partners put their checks into one envelope. Simply designate one of the partners to collect all of the checks and send to the tax collector. For example, if you purchased 30% with your IRA, John purchased 40% with his IRA, Suzy purchased 20% with her corporation, and Michelle purchased 10% as an individual; then you would contact your IRA and have them make a check payable to the tax collector but mail it to your address, John would contact his IRA and his IRA will make a check payable to the tax collector but mail it to your address, Suzy would have a check written from her corporation payable to the tax collector but mailed to your address, and Michelle would write a personal check made payable to the tax collector and sent to your address. Once you receive all of the checks, be sure they all add up to the amount owed and put them in one envelope and send it to the tax collector.
3.) What do you need to include on your check to the property tax collector?