Question for the Money Doctors

Question submitted on Dec 12, 2022.

Question

I have 6.5 acres of prime farmland in NW Iowa. What are the benefits of identifying the acreage as a homestead?

Answer

If the municipality allows you to homestead farmland, your annual property taxes would be about 40% less than if they were not homesteaded.  You will need to check with the assessor for specific requirements for homesteading farmland which is normally held for investment purposes of a farming business. 

For additional information visit //www.360financialliteracy.org/