I am single 23 yr old female and I live at home with my parents. I bought a property and got possession on Jan 1st this year. I lived in it until May 1st at which point a tenant moved in. I got my tax bill today and there was no education credit on it. I called and they informed me that rental property owners don't receive education tax credits. The main reason for this I think is so that you can only claim tax credit on one property. Your primary residence. I won't be claiming that credit as I live with my parents, is there any way that I can claim this credit? I did live there Jan 1. It's a 500$ difference!
2007-06-08 10:02:33 · 2 answers · asked by Vanessa 2 in Business & Finance ➔ Renting & Real Estate
Such tax credits are generally offered on an annual basis only, and you may be required to live in the property the full year in order to qualify for it.
In my state, property owners receive a property tax credit based upon earnings from the lottery gained by the state. If you convert the property to a rental before the entire year has passed, you forfeit the lottery tax credit for the entire year.
I suspect that is also what applies in your case.
2007-06-08 10:08:54 · answer #1 · answered by acermill 7 · 1⤊ 0⤋
The county is totally correct. If you live in the house, then you are entitled to the education property tax relief, if you have the property rented, then it's considered a rental property, therefore, you are not entitled to this relief.
Their is no other way for you to get around this, unless you move back in to your property.
2007-06-08 18:00:05 · answer #2 · answered by Lissy 3 · 0⤊ 0⤋