2006-11-21 07:58:20 · 4 answers · asked by cion 1 in Business & Finance ➔ Taxes ➔ United States
No it isn't. It simply reduces the amount of taxable liability a piece of property has, it has no bearing on income, or the true value of the property.
Real estate which is reported to the federal government, however, must include its real value and not include the exemption deduction.
See http://www.irs.gov/pub/irs-prior/f706--1993.pdf
2006-11-21 08:10:15 · answer #1 · answered by Dimwit D 2 · 1⤊ 0⤋
It is not directly taxable. It only reduces the amount of property tax paid. If you itemize deductions and claim property taxes as a deduction, this deduction would also be reduced. That could result in more income tax.
2006-11-21 19:49:18 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
no it is not for the purpose of income tax..it only exempts the first amount of your property tax (25K usually) that is to be nontaxable
2006-11-21 16:06:42 · answer #3 · answered by cookiesmom 7 · 0⤊ 0⤋
Just what do you mean?
What kind of tax are you referring to: income, property, sales?
In what context? Sale or holding of property, etc.?
2006-11-21 16:14:49 · answer #4 · answered by TaxGuru 4 · 0⤊ 2⤋