Hey everyone! I'm curious about how long substantial improvements on a property stay on the books. I know that once the costs reach 50% of the home's value, it triggers this substantial improvement thing. But how long does this status last? At what point can I make additional renovations without affecting the overall calculation? Any insights would be appreciated!
1 Answer
From what I gather, substantial improvements can impact your property tax assessments. Typically, these adjustments will last until your property is fully reassessed by the local tax office. It's worth checking with them for the specific rules in your area because they might vary a bit.
Thanks for clarifying! My main concern is dealing with FEMA regulations, especially if I need to elevate my property. Right now, I'm under that 50% threshold, but I'm unsure how long before I can make more updates without triggering the substantial improvement rule.
Good point! In my area, once you hit that 50% mark, you also have to ensure the whole property complies with current codes. For example, going just over 50% could mean spending extra cash on things like hurricane-proofing, which is why many folks try to keep their improvements below that threshold.