So while in the process of selling our house, it's come to my attention we had never filed for a Homestead Exemption during 8 years of ownership. After visiting the tax office, I can still receive credit for the past 2 years (year end 2015). However, the 6 additional years are essentially a loss. Can I claim the 6 years of non-filed tax exemptions as a loss on my 2016 taxes?
You should be able to file on or shortly after the day you close on your house. You won't be able to realize the benefit until you own and occupy the house on January 1 of any given year.
Pretty common problem. I've had several clients I've advised get them after noticing they didn't have one. You were able to deduct the loss of your homestead exemption on your tax return every year that was affected via the property tax deduction on schedule A. And opportunity cost is never deductible (but boy do people want me to try).
ah...this is a good explanation. I have obviously been living in the world of forecasting too long where clients believe "opportunity cost" is a tangible value when talking hard dollars...
