I had a question the other day from a buyer that I thought I would share.

Question: Will the property tax amout change once I purchase this home?

In this case the current owners had lived there for a number of years and the "Taxable Value" was much less than the "State Equalized Value". So in this case the answer is yes. Once you close, your taxable value will uncap, and you will then pay taxes on the S.E.V. One way this can be avoided is if the majority of the land is farmed, you can then claim a "Qualified Ag Affidavit". This will stop the uncapping process if approved by the municipality. (Only applies to farms).

If the buyer is using the property for a second home, there will also be a loss of the primary residence deduction.

So, always ask the question to avoid suprises!

Paul Dumke