Tax 14.03 NoteNote: Section 71.01 (6), Stats., was revised by 1997 Wis. Act 37, to include provisions of P.L. 105-34, relating to the exclusion of a gain from the sale of a personal residence, effective for sales after May 6, 1997, the same time as for federal purposes. Under the statutes in effect immediately prior to the enactment of 1997 Wis. Act 37, certain gains from the sale of a personal residence could be deferred under s. 1034 of the internal revenue code, and those gains were excludable from income under s. 71.52 (6), Stats. In addition, a gain on the sale of a personal residence excluded under s. 121 of the internal revenue code, which was the once-in-a-lifetime exclusion for a qualifying sale by a person age 55 or older, was includable in income under s. 71.52 (6), Stats. Tax 14.03 NoteNote: Section 71.52 (6), Stats., was amended by 1997 Wis. Act 27, effective for 1998 homestead credit claims filed in calendar year 1999 and thereafter. Under the statutes in effect immediately prior to the enactment of 1997 Wis. Act 27, scholarship and fellowship amounts described in sub. (5) (c) could not be excluded from income. Tax 14.03 HistoryHistory: Cr. Register, February, 1990, No. 410, eff. 3-1-90; renum. (3) to (6) to be (4) to (7) and am. (5) (a) 1., cr. (3), Register, August, 1990, No. 416, eff. 9-1-90; am. (3) (a), (4) (b) 10., 15., 23. d. and f. Register, June, 1993, No. 450, eff. 7-1-93; cr. (2) (intro.) and (4) (b) 5. e., r. and recr. (4) (b) 3. and (5), am. (3) (a), (b) and (c) 2. and (4) (b) (intro.), 2., 5. (intro.) and a., 7., 11., 12., 14., 15. and 20., renum. (4) (b) 23. (intro.) and a. to i. to be (4) (c) (intro.) and 1. to 9. and am. (4) (c) (intro.) and 6., Register, July, 2000, No. 535, eff. 8-1-00; corrections in (4) (b) 3. f. made under s. 13.92 (4) (b) 6. and 7., Stats., Register March 2013 No. 687; CR 16-046: am. (3) (a), (a) (Example), (4) (b) 23. h., (5) (a) 7. Register January 2018 No. 745, eff. 2-1-18; CR 19-141: r. (4) (b) 23., cr. (4) (c) 10. Register September 2020 No. 777, eff. 10-1-20; CR 22-044: am. (4) (b) 3. e. Register June 2023 No. 810, eff. 7-1-23. Tax 14.04(1)(1) Purpose. This section clarifies the meaning of “property taxes accrued” as the term applies to homestead credit claims. Tax 14.04(2)(2) Definition. Under s. 71.52 (7), Stats., “property taxes accrued” means real or personal property taxes or monthly parking permit fees under s. 66.0435 (3) (c), Stats., exclusive of special assessments, delinquent interest and charges for service, levied under ch. 70, Stats., on a homestead owned by a claimant or a member of the claimant’s household, less the tax credit, if any, afforded in respect of the property by s. 79.10, Stats. With respect to sub. (3) (e), “property taxes accrued” means the property taxes accrued levied on the former homestead owned by the claimant. Tax 14.04(3)(a)(a) Property taxes shall be levied on a homestead or former homestead to qualify as “property taxes accrued.”Property taxes are levied when the tax roll is delivered to the local treasurer for collection, usually on or near December 15 of each year. Tax 14.04(3)(b)(b) The property taxes accrued on a homestead or former homestead for the year to which a claim relates need not be paid prior to filing a homestead credit claim. The fact that the property taxes accrued on the homestead or former homestead are delinquent for years prior to the year to which a claim relates does not disqualify the claimant. Tax 14.04(3)(c)(c) “Property taxes accrued” includes personal property taxes assessed on a homestead or former homestead that is constructed on leased land or assessed on a mobile home owned by the claimant or a member of the claimant’s household. “Property taxes accrued” also includes mobile home parking permit fees assessed under s. 66.0435 (3) (c), Stats., for a mobile home owned by the claimant or a member of the claimant’s household. Tax 14.04(3)(d)(d) Under s. 71.52 (3), Stats., a buyer of a homestead or former homestead in possession under a land contract shall be entitled to claim the property taxes accrued on the homestead or former homestead. Tax 14.04(3)(e)(e) Under s. 71.54 (2) (c) 2., Stats., if a claimant has moved from a homestead owned by the claimant to housing that is exempt from taxation under ch. 70, Stats., other than housing for which payments in lieu of taxes are made under s. 66.1201 (22), Stats., and other than a correctional or detention facility, a claim or claims may be allowed based on the property taxes accrued on that former homestead, provided the claimant has attempted to sell the former homestead. The property taxes accrued on the former homestead may be claimed for the period of time ending on the earliest date any of the events in subds. 1. to 4. occurs. If the earliest date any of those events occurs is in the calendar year following the year in which the claimant moves to the tax-exempt housing, the property taxes accrued shall be prorated from the date of the move to December 31 on a claim for the calendar year in which the move occurs, and from January 1 to the earliest date any of the events in subds. 1. to 4. occurs on a claim for the succeeding calendar year. The events after which the property taxes accrued on the former homestead may no longer be claimed are as follows: Tax 14.04(3)(e)2.2. The claimant begins to rent out or lease out the former homestead. Tax 14.04(3)(e)4.4. Twelve months of time elapses from the date of moving to the tax-exempt housing. Tax 14.04 NoteExample: A claimant moves on July 1, 2017, from the homestead she owns to an apartment that is exempt from property taxes. She has listed her former homestead for sale with a realtor. While continuing to reside in the apartment, she sells the former homestead; the date on the closing agreement is May 31, 2018. The property taxes accrued on the former homestead are $2,400 for 2017 and the prorated property taxes on the closing agreement are $1,000.
Tax 14.04 NoteThe claimant may file a 2017 homestead credit claim, based on the 2017 property taxes accrued of $2,400 for the entire year. She may also file a 2018 claim, based on the property taxes accrued of $1,000, prorated from January 1, 2018, to the date of the sale.
Tax 14.04(4)(a)(a) Except as provided in pars. (b) and (c), a claimant who claims property taxes accrued shall submit with the homestead credit claim a copy of the property tax bill, or if not available, a substitute for the property tax bill containing equivalent information to that appearing on the original property tax bill. Tax 14.04(4)(b)(b) If a claimant sells a homestead during the year to which a claim for homestead credit relates, proper verification of property taxes accrued shall be a copy of one of the following documents: Tax 14.04(4)(b)2.2. The property tax bill for the year prior to the year to which the claim relates. Tax 14.04(4)(c)(c) If a claimant’s homestead is a mobile home owned by the claimant or a member of the claimant’s household, on which parking permit fees are assessed under s. 66.0435 (3) (c), Stats., proper verification of property taxes accrued shall be a copy of the parking permit fee statement issued by an authorized representative of the municipality in which the mobile home was located, or if the claimant paid rent for the land on which the mobile home was located and also paid parking permit fees to a landlord, a statement of the parking permit fees paid to the landlord, signed by the landlord, such as a form I-017, “Rent Certificate.” Tax 14.04(5)(5) Effect of relief and other public assistance. Tax 14.04(5)(a)(a) Under s. 71.54 (2) (a), Stats., property taxes accrued shall be reduced by one-twelfth for each month or portion of a month for which the claimant received either $400 or more of county relief under s. 59.53 (21), Stats., or any amount of aid to families with dependent children, or “AFDC” under s. 49.19, Stats., Wisconsin works payments for community service jobs or transitional placements under s. 49.147 (4) or (5), Stats., or Wisconsin works payments as a caretaker of a newborn child under s. 49.148 (1m), Stats. However, property taxes accrued need not be reduced if the assistance consists solely of foster care payments under s. 49.19 (10) (a), Stats., non-legally responsible relative, or “NLRR” AFDC payments or kinship care payments. Tax 14.04(5)(b)(b) County relief and other cash public assistance payments that are repaid by the claimant in the same calendar year in which they are received are not considered payments for purposes of computing the one-twelfth reduction of property taxes accrued as required by par. (a). Tax 14.04(6)(6) Marital property agreements. Under s. 71.52 (7), Stats., a marital property agreement or unilateral statement under ch. 766, Stats., has no effect in computing property taxes accrued for a person whose homestead is not the same as the homestead of that person’s spouse. Tax 14.04(7)(7) Ownership of homestead by one person or one household. An otherwise qualified person who owns and resides in a Wisconsin homestead may claim a homestead credit based upon property taxes accrued on the homestead, even if another person pays the property taxes. Tax 14.04(8)(8) Ownership of homestead by more than one person. Tax 14.04(8)(a)(a) Except as provided in par. (c), under s. 71.52 (7), Stats., if a homestead is owned by 2 or more persons or entities as joint tenants or tenants in common or is owned as marital property or survivorship marital property and one or more of the co-owners is not a member of the claimant’s household, property taxes accrued is that part of the property taxes accrued levied on the homestead, reduced by the tax credit under s. 79.10, Stats., that reflects the ownership percentage of the claimant and the claimant’s household. Tax 14.04(8)(b)(b) Except as provided in par. (c), if a qualified claimant residing in a co-owned homestead pays the property taxes accrued for a co-owner not residing in the homestead and not claiming property taxes accrued under s. 71.54 (2) (c) 2., Stats., and sub. (3) (e), the claimant may claim a homestead credit based upon both the claimant’s proportionate share of “property taxes accrued” as described in par. (a) and “gross rent” for the property taxes accrued paid on behalf of each absent owner, as provided in s. Tax 14.05 (3) (c). On the other hand, if a qualified claimant residing in a co-owned homestead pays the property taxes accrued for a co-owner who also resides in the homestead but is not a member of the payor’s household, or who is claiming property taxes accrued under s. 71.54 (2) (c) 2., Stats., and sub. (3) (e), each co-owner may file a claim based upon that portion of the property taxes accrued that reflects the ownership percentage of each claimant and his or her household. Tax 14.04 NoteExamples: 1) A, B and C each own a one-third interest in a dwelling. A and B are married to each other and live in the dwelling; C lives elsewhere. A and B both qualify for homestead credit and pay all of the property taxes accrued, which are $1,800.
Tax 14.04 NoteEither A or B may claim a homestead credit based upon “property taxes accrued” of $1,200, their two-thirds share, plus “gross rent” of $600, since they pay C’s one-third share of the property taxes.
Tax 14.04 NoteIf C had also occupied the homestead, A and B could have claimed only $1,200 of “property taxes accrued” and no “gross rent,” even though they paid the entire $1,800. In addition, C could have filed a claim if otherwise qualified, based upon “property taxes accrued” of $600.
Tax 14.04 Note2) A mother and son each own a one-half interest in a dwelling occupied solely by the mother, who qualifies for homestead credit. The son pays all of the property taxes accrued on the dwelling.
Tax 14.04 NoteThe mother may claim a homestead credit based upon one-half of the property taxes accrued.
Tax 14.04 Note3) A brother and sister both qualify for homestead credit and own 75% and 25% interests, respectively, in a homestead they both occupy. The brother pays all of the property taxes accrued on the homestead.
Tax 14.04 NoteEach may claim a homestead credit based upon the portion of property taxes accrued reflecting their ownership percentage.
Tax 14.04(8)(c)(c) Under s. 71.52 (7), Stats., if a claimant has inherited a partial ownership interest in a homestead, is entitled to possession of the property and is required by the terms of the will that transferred the ownership to pay all of the property taxes on the homestead, the claimant may claim a homestead credit based upon the entire amount of property taxes accrued on the homestead. Tax 14.04(9)(a)(a) Under s. 71.52 (7), Stats., if a claimant sells or purchases a homestead during the year to which a claim for homestead credit relates, the property taxes accrued shall be prorated for the time the seller or buyer both owned and occupied the homestead during the year. The seller may use the closing agreement, the property tax bill for the year prior to the year to which the claim relates or the property tax bill for the year to which the claim relates as the basis for computing allowable property taxes accrued. The purchaser may use only the property tax bill for the year to which the claim relates as the basis for computing allowable property taxes accrued. Tax 14.04(9)(b)(b) Except as provided under s. 71.54 (2) (c) 2., Stats., and sub. (3) (e), if a seller moved from the homestead or established a homestead elsewhere before the closing date shown on a closing agreement and the property taxes are prorated on the agreement to the closing date, the property taxes shall be further prorated for homestead credit purposes to consider in the year of sale only the property taxes for the period the seller maintained a homestead on the property. Tax 14.04 NoteExample: Ownership of a homestead is transferred on June 30. The prorated property taxes for 6 months on the closing agreement are $1,200. The seller moves from that homestead to a new homestead on May 31.
Tax 14.04 NoteThe portion of prorated property taxes allowable to the seller is $1,000, which is the property taxes from January 1 to May 31, rather than the $1,200 shown on the closing agreement.
Tax 14.04(10)(a)(a) Not part of a farm. Under s. 71.52 (3) and (7), Stats., if a homestead is not part of a farm, property taxes accrued for land are limited to the property taxes on up to one acre of land which surrounds the homestead dwelling and is reasonably necessary to the use of the dwelling as a home. A parcel of land separated from the homestead parcel by such things as a street, river or utility right-of-way shall be considered to be a part of the homestead parcel. Tax 14.04(10)(b)(b) Part of a farm. Under s. 71.52 (7), Stats., if a homestead is part of a farm, property taxes accrued on up to 120 acres of land which surrounds the homestead dwelling may be claimed. Property taxes accrued for parcels of land which do not surround the homestead parcel shall be allowed if the nonsurrounding parcels are necessary to the use of the homestead parcel as a home. Tax 14.04 NoteExample: A farmer owns 3 parcels of land, 60, 40, and 20 acres in size. The homestead is located on the 60 acre parcel. The 60 and 20 acre parcels have a common border. The 40 acre parcel is separated from the others by a neighboring farm. In this situation, qualifying land includes both the 60 acre homestead parcel and the 20 acre parcel adjacent to the homestead parcel. The 40 acre parcel does not qualify since it is not adjacent to the homestead parcel and is not necessary to the use of the homestead as a home. However, if the 3 parcels and the neighboring farm were so situated that a driveway must cross the 40 acre parcel, as well as a portion of the neighboring farm, to reach the homestead or if a substantial portion of farm buildings necessary to the operation of the farm were on the 40 acre parcel, then that parcel would qualify since it would be necessary to the use of the homestead as a farm home. If the 3 parcels were situated so that the 60 acre parcel bordered on the 20 acre parcel which in turn bordered on the 40 acre parcel, the taxes on all 3 parcels would qualify, since they form one contiguous unit.
Tax 14.04(11)(11) Multipurpose and multidwelling buildings. Under s. 71.52 (7), Stats., property taxes accrued on a homestead that is part of a multipurpose or multidwelling building are the property taxes accrued on the portion occupied as a principal residence, based upon a percentage of the total property taxes accrued on the multipurpose or multidwelling building and the same percentage of the property taxes accrued on the land surrounding it which otherwise qualifies as described in sub. (10). Property used partly as a homestead and partly for any business purpose, other than farming, for which a deduction is allowed or allowable for income tax purposes is multipurpose property. Property used partly as a homestead and partly as living quarters rented to others is multidwelling property. A building divided into 2 units, one of which is the homestead of a claimant and the other of which is the living quarters of a person who does not pay rent is multidwelling property, even though there is no business or rental use. Tax 14.04 NoteExamples: 1) A claimant was a homeowner who as a salesperson used one room of the 8-room house exclusively for business activities. Property taxes accrued for the year were $1,600.
Tax 14.04 NoteThe claimant may claim only seven-eighths of the property taxes accrued, or $1,400, in the computation of allowable homestead credit, since the other one-eighth, or $200, constitutes business taxes.
Tax 14.04 Note2) Assume the same facts as in example 1, except that the room was not used exclusively for business. No deductions would be allowable for income tax purposes and the full $1,600 of property taxes accrued could therefore be claimed in the computation of allowable homestead credit.
Tax 14.04 Note3) A claimant owned a duplex, lived in one of the 2 equal-sized units and rented out the other unit. Property taxes accrued for the year were $2,400.
Tax 14.04 NoteOnly $1,200, representing the property taxes accrued on the claimant’s principal dwelling, may be claimed in the computation of allowable homestead credit.
Tax 14.04 Note4) Assume the same facts as in example 3, except that the claimant lived in one unit and the claimant’s son or daughter lived in the other unit but was not required to pay rent. The claimant nevertheless may claim only $1,200 of the property taxes accrued.
Tax 14.04(12)(12) Property subject to a life estate. Property taxes assessed on property subject to a life estate may only be claimed as “property taxes accrued” for purposes of homestead credit by a person in possession of the life estate interest. The life estate must be in writing and incorporated in the warranty deed or other legal documentation. Tax 14.04 NoteExample: A widow and her son reside in the same homestead. Prior to the year of the claim, the widow transferred the property to her son by quit-claim deed but retained a life estate in the property. She pays the property taxes, but the property tax bill comes in her son’s name.
Tax 14.04 NoteIf otherwise qualified, the widow may file a claim for homestead credit based upon the entire amount of property taxes accrued. The son may not claim homestead credit based upon any portion of the property taxes accrued on the homestead even though he resides in the property and is otherwise qualified.
Tax 14.04 NoteNote: The computation of property taxes accrued of a claimant who becomes married or divorced during a claim year or occupies a separate dwelling from his or her spouse for any part of a claim year is described in s. Tax 14.06. Tax 14.04 NoteNote: Section 71.54 (2) (a) (intro.), Stats., was amended by 1995 Wis. Act 27, effective July 28, 1995, to reference “relief from any county under s. 59.07 (154),” Stats. (s. 59.07 (154), Stats., was renumbered s. 59.53 (21), Stats., by 1995 Wis. Act 201, effective September 1, 1996). Section 71.54 (2) (a) (intro.), Stats., was again amended, by 1995 Wis. Act 289, effective July 1, 1996, to provide for a one-twelfth reduction of property taxes accrued for months a claimant received Wisconsin works under s. 49.147 (4) or (5), Stats. Prior to the enactment of 1995 Wis. Acts 27 and 289, the county relief reference was to “general relief from any municipality or county,” and there was no reference to Wisconsin works because that program did not exist. Tax 14.04 NoteNote: Section 71.54 (2) (a) (intro.), Stats., was amended by 1999 Wis. Act 9, effective for 2000 homestead credit claims filed in calendar year 2001 and thereafter, to require a one-twelfth reduction of property taxes accrued for months a claimant received Wisconsin works payments as a caretaker of a newborn child under s. 49.148 (1m), Stats. Under the statutes in effect immediately prior to the enactment of 1999 Wis. Act 9, the reduction was not required for receipt of those payments. Tax 14.04 HistoryHistory: Cr. Register, February, 1990, No. 410, eff. 3-1-90; am. (2), (3) (a) to (d), (8) (b) and (9) (b), cr. (3) (e), Register, January, 1991, No. 421, eff. 2-1-91; am. (2), (3) (b), (c), (4) (a), (b) 1., 2. and (c), (8) (a), (b), (9) (a), (b), (10) (a) and (11), r. and recr. (5) and cr. (8) (c), Register, July, 2000, No. 535, eff. 8-1-00; corrections in (2), (3) (c), (e) and (4) (c) made under s. 13.93 (2m) (b) 7., Stats., Register September 2006 No. 609; CR 21-085: am. (3) (e) (Example) Register August 2022 No. 800, eff. 9-1-22. Tax 14.05Tax 14.05 Gross rent and rent constituting property taxes accrued. Tax 14.05(1)(1) Purpose. This section clarifies the terms “gross rent” and “rent constituting property taxes accrued” as the terms apply to homestead credit claims. Tax 14.05(2)(a)(a) “Gross rent” has the meaning specified in s. 71.52 (2), Stats. Gross rent includes payments by a claimant to the landlord for items normally associated with the occupancy of a homestead, such as a garage or parking space, appliances, furniture or utilities. However, payments for food, medical services or other personal services are expressly excluded under s. 71.52 (2), Stats. In situations where charges for food and services are subtracted from amounts paid to a landlord, gross rent is commonly referred to as “rent paid for occupancy.” Tax 14.05(3)(a)(a) Gross rent may be claimed only for the year to which the claim relates, but it may have been paid at any time before the claim is filed. Tax 14.05(3)(b)(b) Property taxes accrued on a claimant’s homestead not owned by the claimant or a member of the claimant’s household, which are paid by the claimant on behalf of an owner who does not reside in the homestead and who does not claim property taxes accrued under s. 71.54 (2) (c) 2., Stats., shall be considered gross rent. Tax 14.05(3)(c)(c) Personal property taxes or mobile home parking permit fees assessed under s. 66.0435 (3) (c), Stats., paid by a claimant for a rented mobile home shall be considered gross rent. In addition, rental paid to a landlord for a mobile home or for land on which a mobile home is located shall be considered gross rent. Tax 14.05(4)(4) Verification of rent constituting property taxes accrued. Tax 14.05(4)(a)(a) Except as provided in pars. (b) and (c), if a claimant claims rent constituting property taxes accrued the claimant and the landlord shall complete form I-017, “Rent Certificate,” and the claimant shall submit it with schedule H or H-EZ. The department is not precluded from requesting additional documentation to verify rent paid in cases it deems appropriate. Tax 14.05(4)(b)(b) If a claimant pays rent for more than one homestead during a year, a separate rent certificate shall be completed for each homestead for which the claimant wishes to claim a homestead credit, and the claimant shall submit all rent certificates together with a single schedule H or H-EZ. Tax 14.05(4)(c)(c) A landlord shall determine the reasonable value of food, medical services and other personal services such as laundry, transportation, counseling, grooming, recreational and therapeutic services provided to a claimant in addition to occupancy rights and subtract those amounts from total rent indicated on the rent certificate, to determine rent paid for occupancy. The landlord shall also indicate whether heat was included or not included in the rent by checking the appropriate box on the rent certificate. Tax 14.05(4)(d)(d) Under s. 71.55 (2), Stats., a landlord is prohibited from charging a fee for completing the rent certificate. Tax 14.05(4)(e)(e) If a claimant is unable to obtain a rent certificate from a landlord, proper rent receipts, money order receipts, cancelled checks or cancelled share drafts substantiating amounts paid shall be acceptable evidence of gross rent paid. The claimant shall also include a rent certificate on which all lines except the signature line have been filled in, or a statement providing the same information as that requested on the rent certificate. The statement or rent certificate shall indicate whether heat was included in the rent, and whether food or services as described in par. (c) were provided and if so the estimated value of the food and services provided. The statement or top portion of the rent certificate should be marked with a comment such as “Landlord Refuses to Sign.” Tax 14.05(4)(f)(f) Proper verification of rent constituting property taxes accrued for a claimant who pays property taxes on the homestead on behalf of an owner other than the claimant shall be a copy of the property tax bill and a statement from the claimant, indicating that he or she paid the property taxes on behalf of an owner who did not reside in the homestead. Tax 14.05(5)(5) Effect of relief and other public assistance. Tax 14.05(5)(a)(a) Under s. 71.54 (2) (a), Stats., rent constituting property taxes accrued shall be reduced by one-twelfth for each month or portion of a month for which the claimant received either $400 or more of county relief under s. 59.53 (21), Stats., or any amount of aid to families with dependent children, or “AFDC” under s. 49.19, Stats., Wisconsin works payments for community service jobs or transitional placements under s. 49.147 (4) or (5), Stats., or Wisconsin works payments as a caretaker of a newborn child under s. 49.148 (1m), Stats. However, rent constituting property taxes accrued need not be reduced if the assistance consists solely of foster care payments under s. 49.19 (10) (a), Stats., non-legally responsible relative, or “NLRR” AFDC payments or kinship care payments. Tax 14.05(5)(b)(b) County relief and other cash public assistance payments that are repaid by the claimant in the same calendar year in which they are received are not considered payments for purposes of computing the one-twelfth reduction of rent constituting property taxes accrued as required by par. (a). Tax 14.05(6)(6) Marital property agreements. Under s. 71.52 (8), Stats., a marital property agreement or unilateral statement under ch. 766, Stats., has no effect in computing rent constituting property taxes accrued for a person whose homestead is not the same as the homestead of that person’s spouse. Tax 14.05(7)(7) Non-arm’s length rental. Under s. 71.55 (8), Stats., if a homestead is rented under circumstances deemed by the department to be not at arm’s length, it may determine rent constituting property taxes accrued as at arm’s length. The department may make this determination when the amount claimed is in excess of fair rental value. However, since under s. 71.52 (2), Stats., “gross rent” is limited to rental actually paid, the department may not increase the rent constituting property taxes accrued to arm’s length rental if the rent paid was at less than fair rental value. Tax 14.05 NoteExample: A claimant files a claim with a rent certificate showing rent paid for occupancy of $7,200, or $600 per month. Investigation by the Department of Revenue discloses the rent is too high for the locality and dwelling involved, and the landlord is financially dependent on others for support and is related to the claimant. The department determines that the fair rental value of the claimant’s homestead for the year of the claim was $300 per month, or $3,600 for the year. No utilities, food or services were furnished by the landlord.
Tax 14.05 NoteAllowable rent constituting property taxes accrued is $900, which is 25% of $3,600.
