Working on my 2021 taxes and I came to a question with no help or guidance within TurboTax software. Here is what's stated:
"Property Owner's Residential Exemption Termination Declaration. Utah residential property owners can declare they no long qualify to receive a homeowner's exemption authorized under UC subsection 59-2-103 on their primary residence. Do you declare you no longer qualify to receive a residential exemption?" Options are "Yes" or "No"
We purchased our home back in August 2020, moving here from another state. We live in our home throughout the year.
I'm guessing the answer is "No", but I don't recall seeing this question before and it's quite foreign to me.
I'll be scanning various Utah.gov materials but also welcome input from others in the community.
I believe I've found the answer and providing for others who may need to know.
Review this web page https://propertytax.utah.gov/general/primary-residential-exemption/
There's reference to reviewing your property tax statement. Cross referencing that, under the "Assessment Type" you would have an entry stating "Residential Exemption" and you'll notice the discounted property tax amounts.
Looked at my tax notice and do not see anything that was mentioned above??? Is the answer yes or no?
If you don't see an indication on your tax notice, and you don’t know if you qualify for the homeowner’s exemption, you need to call your county assessor’s office.
According to Part 7 – Property Owner’s Residential Exemption Termination Declaration in the 2021 TC-40 Utah Individual Income Tax Instructions:
You must notify the county when you have a primary residential property on which you have claimed the homeowner’s exemption and to which you are no longer entitled. You must also report on your Utah income tax return that you no longer qualify for the homeowner’s exemption on your primary residence.
Note: Do not complete Part 7 if you change your primary residence and were entitled to claim the homeowner’s exemption on your former residence and are entitled to claim the homeowner’s exemption on your new residence. If you are unsure about your homeowner’s exemption qualification, contact the county assessor’s office.
Enter "X" in Part 7 if you no longer are entitled to the homeowner’s exemption, and enter the code from the chart [included in the instructions] for the county in which the property is located.