Jan. 23, 2006 - The Property Tax Homeownwers Exemption

First of all, allow me to say this, you don't subscribe to my blog and you are wondering why it wound up in your inbox. I personally put you on the mailing list at one time or another because you are either a principle party in what I am blogging about and you might want to publicly defend an opposing position, an expert in your field who could add some intelligent comments, or, the person that planted the seed that grew into the subject of a particular posting and I thought you might like to see how you are helping me help others. Whatever the case may be, I am not a spammer and I gladly remove anyone who asks me to. Now on to the subject.

As strange as this may sound, I have run across a school of thought that says that by not taking an exemption on your property taxes you get a better income tax return. I certainly agree you will have a bigger amount to enter on line 6 of your Schedule A, but I am baffled by the logic. If you pay out more than you have to, does it really matter if it comes out of your left pocket rather than your right? If there is some magic math my accountant hasn't told me about I am going to fire him. Call me old fashioned but I always thought that business loses, not over paying property taxes, was the way to a better return.

At any rate, I am just a Real Estate Agent. I'm the guy that goes hither and yon trying to help people realize their real estate dreams. The Cook County Assessor's Office has all the information a person needs to be able to formulate an opinion on, and understand what should be done in regard to The Homeowners Exemption. Me, my professional self, I really cherish paying lower taxes and you should too. You probably don't even realize that not taking your Homeowners Exemption will have a trickle down effect on the person you sell your property to in the future. Yes indeed, we all live and learn.

In the end, my professional position is as follows: Homeowners and prospective sellers, if you have not applied for your Homeowners Exemption, do it now. I say here publicly, that from here on out, I will not list a property where the owners are entitled to the exemption, but chose not to take it. It will hurt the buyer in the long run. Buyers, make sure the home you consider buying is currently being taxed with the Homeowners Exemption in place. If it is not, due to irrational thinking, ignorance, or whatever, ask your agent to make the sellers applying for it a contingency on the offer. That is going to be my standard practice from now on.