Generally, yes. The value of the residence (or any other non-agricultural improvement) will be deducted from the sale price to calculate the tax credit. The value of a home can be determined by submitting an itemized property tax statement or by providing a copy of the appraisal.
Example:
- Sale price is $500,000
- Appraisal value of home is $200,000
- Appraisal value of farmland and agricultural buildings (barn, pole shed, etc) is $300,000
- Tax credit would be 8 or 12% of the qualifying $300,000 in agricultural assets = $24,000 or $36,000
Generally, yes. The value of the residence (or any other non-agricultural improvement) will be deducted from the sale price to calculate the tax credit. The value of a home can be determined by submitting an itemized property tax statement or by providing a copy of the appraisal.
Example:
- Sale price is $500,000
- Appraisal value of home is $200,000
- Appraisal value of farmland and agricultural buildings (barn, pole shed, etc) is $300,000
- Tax credit would be 8 or 12% of the qualifying $300,000 in agricultural assets = $24,000 or $36,000
This tax credit is nonrefundable, meaning it will only reduce the Minnesota state taxes you owe and will never be issued as a tax refund. However, asset owners may carry the tax credit forward for 15 years, and beginning farmers may carry the tax credit forward for 3 years. To carry a tax credit forward, you do not need to reapply and will use the same certificate number.
This tax credit is nonrefundable, meaning it will only reduce the Minnesota state taxes you owe and will never be issued as a tax refund. However, asset owners may carry the tax credit forward for 15 years, and beginning farmers may carry the tax credit forward for 3 years. To carry a tax credit forward, you do not need to reapply and will use the same certificate number.
Yes, asset owners who are not Minnesota residents are eligible. However, this tax credit is only for tax liability due to the state of Minnesota.
Yes, asset owners who are not Minnesota residents are eligible. However, this tax credit is only for tax liability due to the state of Minnesota.
Beginning farmers must apply every year to confirm their eligibility. Asset owners must apply every year for 1-year leases and sales. If an asset owner is applying with a multi-year lease, they only need to apply every three years or sooner if the lease ends or is modified.
Beginning farmers must apply every year to confirm their eligibility. Asset owners must apply every year for 1-year leases and sales. If an asset owner is applying with a multi-year lease, they only need to apply every three years or sooner if the lease ends or is modified.
Yes. Funding for this program is first-come, first-served, so we encourage applicants to apply as soon as they are prepared with a purchase agreement or lease.
Yes. Funding for this program is first-come, first-served, so we encourage applicants to apply as soon as they are prepared with a purchase agreement or lease.
