Understanding Idaho’s Owner Occupied Tax Exemption
Did you know the state of Idaho offers homeowner’s exemption equal to the lesser of 50% of the assessed value or $100,000 for owner-occupied homes and manufactured homes that are primary dwellings? The exemption applies to your home and up to one acre of land.
So, if you are a homeowner that occupies your property as your primary residence, you get a nice tax break. But what happens when you go to sell the home? Here are a few things to take into consideration BEFORE removing the exemption from the residence. The exemption must be filed by April 15th to receive the perk. So, for example, if you list your home in June of any year and remove the exemption, the new buyer cannot take advantage of the exemption until the following April 15th. That means they will be paying higher taxes on the home for almost a year. As the seller, this can make your listing less desirable, especially at a lower price point. Taxes can raise a buyer’s payment to an undesirable monthly payment or put the home out of affordability completely, meaning fewer buyers for your home. When possible leave the exemption in place until the close of escrow, so that the new homeowner has access to the benefit right away.
For more information feel free to contact me at firstname.lastname@example.org or 208-941-2346.