You could think about a residential space with extra land , without knowing about tax consequences, particularly if you don’t intend to cultivate the land. Prior to purchasing, speak with an attorney or tax expert who will help you navigate the residential tax exemption as well as the tax on agricultural properties.
If the land is zoned for agriculture residential use , and the item that was used to construct it is regarded for agricultural exclusion. Do not risk having to make tax-saving mistakes based on assumptions, and consult an lawyer. They will clarify the fine details and the law to make it easier to understand exemptions and the conditions to meet for qualification. One property is not able to have two exemptions: homestead and agricultural exemptions. The homestead that is located in a five-acre farm does not qualify for an agricultural tax exemption.
If you select to opt on the exemption to agricultural use, in the event that your farm is not full-time, a higher rate of agricultural taxes than the capped tax on homesteads will not help you reduce your expenses. You cannot move the taxes on agricultural production and aren’t transferable. In contrast, tax benefits for homesteads are transferable when you move from the property. This is an excellent offer if you’re trying to acquire additional land which will not be used to house your family, but you wish to sell the property very soon. An agricultural lawyer will assist in making the right choice and will help reduce your tax burden.