Real Estate Tax Question

[CycloneDaddy]

We did and now I am smoking my cigarette.

That was quick

 

[ArgentCy]

It kind of depends:

You are correct that they would qualify for the "Sale of Main Home" exclusion

but

beings it is a Farm have they been using the Farm as a business? If so that will factor in some.

Kind of hard to give a more definitive answer without knowing all the specifics and I understand not wanting to put them on a message board.

13 acres is not a farm in my world. And would be impossible to really argue against unless they've been planting corn up to the house.

 

[isufbcurt]

13 acres is not a farm in my world. And would be impossible to really argue against unless they've been planting corn up to the house.

I agree. I was just trying to get more details before I gave him a position.

 

[ArgentCy]

Yeah, assessors page says ag

That doesn't mean much of anything, other than they've saved a lot of money on taxes.

 

[isufbcurt]

That was quick

I have a race to get to so I was in a hurry.

 

[isufbcurt]

That doesn't mean much of anything, other than they've saved a lot of money on taxes.

Exactly. My property is considered AG and we just had it appraised. The taxes we pay are way less than what other houses with our value pay.

 

[CloneLawman]

13 acres is not a farm in my world. And would be impossible to really argue against unless they've been planting corn up to the house.

Of course there could be farm buildings, fence, tile, etc. on the 13 acres that have been depreciated, which is why Curt asked the question. What ArgentCy considers a "farm in his world" is not what controls here, pal.

 

[ArgentCy]

Exactly. My property is considered AG and we just had it appraised. The taxes we pay are way less than what other houses with our value pay.

I have an acreage deemed Rural Residential with ~3 acres. I pay more land taxes (as part of the property tax) than all my neighbors who all have 30+ acres. They all have it deemed Rural Ag Dwelling.

 

[ArgentCy]

Of course there could be farm buildings, fence, tile, etc. on the 13 acres that have been depreciated, which is why Curt asked the question. What ArgentCy considers a "farm in his world" is not what controls here, pal.

Agreed, these are IRS tax rules. And I want to read those about as much as I want to chew on lead paint.

 

[mapnerd]

That doesn't mean much of anything, other than they've saved a lot of money on taxes.

It does mean a lot. A lot of money saved over the years.

 

[BCClone]

Check with NRCS, if it has been used as pastureland or any type of production use (for something like 5 of the last 7 or 8 years) you may be able to stick a chunk in CRP or wetland programs where you would get 250-300/acre (what it goes for in N. Iowa) for a decent amount of time.

 

[Sparkplug]

Check with NRCS, if it has been used as pastureland or any type of production use (for something like 5 of the last 7 or 8 years) you may be able to stick a chunk in CRP or wetland programs where you would get 250-300/acre (what it goes for in N. Iowa) for a decent amount of time.

CRP rents have decreased. What was $300 two years ago is now $150 tops. It’s based on a percentage of cash rental rates for the county.

Cost share of inputs and mid-contract managements costs have also changed or do not exist.