Homestead Exemption Questions

[Paul C.]

Hi, I'm trying to figure out what to do with the homestead exemption and how it applies to my situation. We owner occupied a home for 2 years and had the homestead exemption on that property. We then started renting it out this year and I just left it as is because I didnt even think about it. Now, we recently bought another property that we are house hacking and going to live in for a year or two. Do I need to remove the homestead exemption from my first property and apply it to my new one? Am I allowed to just leave it on the property that would provide the biggest benefit or does it actively need to be the property I am living in? My main concern is ensuring I'm not doing anything sketchy when it comes to the IRS :)

[Eamonn McElroy]

@Paul C.

Assuming you're in Atlanta:

You don't get to choose.  You may only use the homestead exemption for the year if you owned and occupied the home as of January 1st.

Take it off the rental and put it on your primary residence next year.

"My main concern is ensuring I'm not doing anything sketchy when it comes to the IRS"

The IRS doesn't care about homestead exemptions.  That's state and/or local government jurisdiction.