It is possible to think about buying a property with an additional piece of land even though the land isn’t meant for agricultural use. Before you purchase, consult your attorney, or a tax expert who will help you navigate the tax exemption for residential properties along with agricultural property tax.
The property zoned for residential agriculture property that is used to create agriculture-related products can be eligible for tax exemption even when the farming bit is not commercialized. Do not risk taking tax-savings decisions that are that are based on assumptions and seek the advice of an attorney. An attorney will help clarify every aspect of the tax law, and help you getting the right information about the limitations and exemptions that apply to qualifying. A single property can’t have two exemptions: homestead and agricultural exemptions. 1-acre homestead on a 5-acre farm cannot be considered eligible to be exempt from taxation on agricultural products.
A tax rate for agriculture that is greater that is higher than the cap homestead tax will not save you cash if you choose to take an agricultural tax exemption unless you are farming full-time. The agricultural portion is not portable, and the tax benefit is not transferable. The homestead tax savings can be transferred when you move from the property. This is the best deal if you buy a property having land in excess of your residential space but plan to relocate shortly. A lawyer for agriculture can assist you reduce your tax burden as well as help you make the right choices. tj3kgem957.