Need Sanity Check:DC Homestead Exemption Revoked -- Based on Rental Ad in Craig's List!!!!

[Anonymous]

Good grief - am totally stunned by your situation OP. I knew dc gov't was looking for innovative ways to beef up income, but they've outdone themselves here. Wouldn't be surprised if trolling craigslist is a new collateral duty for dc's "parking enforcement officers." Good luck to you!!

[Anonymous]

Thanks. Based on my experience so far, I'll need it.

[Anonymous]

Anonymous wrote:OP here. I received no letter. Period. Renting out a portion of one's home does NOT disqualify one. Period. If it did, it would amount to a sort of double whammy since I pay taxes on the rental income. So not clear to me that I was part of the audit at all. Since I DO live in my home, I would have seen any correspondence.

Seems like a conflict of interest and hyper-aggressive pursuit of money -- I'm talking $12k that they are holding on to that they know is not theirs and all they have to do is return it to the mortgage company. They told me earlier this week that they could not reinstate me because "their system was down".

Which council member's office was it that was helpful? A call to the case worker in mine has gone unanswered. More great government service.

I don't mind the escrow requirement at all.

I have not seen a tax bill because the huge amount was taxes at the investor rate plus penalties and interest from last Sept to present and I get billed twice a year so there must have been a timing glitch.

I have no issue with being audited -- if that is really what they did or intended to do. I object to never being asked to provide proof of residency before this action was taken.

Even if I HAD seen it on my tax bill, I submit that it would be a jackass way to issue notification of revocation. The info was all there on the website once I looked but who cruises websites like that? We pay our mortgage by automatic draft and the payments did not change. Yet...

I think I will get creative if they don't get more forthcoming. Does anybody think requesting a meeting with them would help?

Never meet with a taxing authority unaccompanied by a lawyer. In fact, never meet with them ever, unless subpoenaed. I'm a lawyer, and I wouldn't even go w/o one. You will be on record for anything you might say in passing, if they record it in a note. If some lowly GS-7 (or dc-gov equivalent) is doing your intake, and has some personal issue with you about you being so much better off financially than they are etc, you could be screwed for a very, very long time. Tax collectors are petty, petty weasels. Remember, these are the people that stole 50m in property tax proceeds over 7 yet supposedly no one knew it was happening until suddenly W-Post exposed it. Protect yourself.

[Anonymous]

PP here: They stole this money over 7 years, I meant.

[Anonymous]

it is possible that they did not send a letter - I believe the OP since I have heard of it in other circumstances. The mortgage company did the correct thing by paying the bill, since technically you are several years behind now and the city would have the right to sell your house for unpaid taxes! The mortgage co. are also being very reasonable by not looking for all the back taxes from you immediately - I know someone you is currently $25k out of pocket having been caught up in the audit. Their appeal process has begun but the lawyer estimates that it could be 18 months before they see that money.

There is an appeals procedure which you need to calm down and follow. Essentially you need to provide proof that you lived in the home - your federal income tax return showing that address for all those years will probably suffice.

Also, before you go any further you should confirm that renting out part of the home does not disqualify you from the homestead deduction... it might and I know that would not seem entirely fair..... but if that is the law......

It might also be important that you hae everything else in order - was your rental unit a legal one? does it have a certificate of occupancy? and did you pay your federal and dc taxes on the income. If the answer to any of these is no, it might be worth stopping any appeal, paying the bill and moving on with your life - you will have to compute that the other costs might be. (if the answer to all of these is no, that is another scenario.....)

[Anonymous]

Be sure to mail everything in via certified mail/fedex requiring signatures.
Good luck!

[Anonymous]

This is exactly why we pay our own property tax and homeowners insurance directly, it is NOT escrowed through our mortgage.

My parents had a similar issue (not in DC) many years ago.

[Anonymous]

Anonymous wrote:it is possible that they did not send a letter - I believe the OP since I have heard of it in other circumstances. The mortgage company did the correct thing by paying the bill, since technically you are several years behind now and the city would have the right to sell your house for unpaid taxes! The mortgage co. are also being very reasonable by not looking for all the back taxes from you immediately - I know someone you is currently $25k out of pocket having been caught up in the audit. Their appeal process has begun but the lawyer estimates that it could be 18 months before they see that money.

There is an appeals procedure which you need to calm down and follow. Essentially you need to provide proof that you lived in the home - your federal income tax return showing that address for all those years will probably suffice.

Also, before you go any further you should confirm that renting out part of the home does not disqualify you from the homestead deduction... it might and I know that would not seem entirely fair..... but if that is the law......

It might also be important that you hae everything else in order - was your rental unit a legal one? does it have a certificate of occupancy? and did you pay your federal and dc taxes on the income. If the answer to any of these is no, it might be worth stopping any appeal, paying the bill and moving on with your life - you will have to compute that the other costs might be. (if the answer to all of these is no, that is another scenario.....)

Op here. This is totally off point.

[Anonymous]

OP here. My qualification for the homestead exemption is absolutely not in dispute. The rental unit is not an issue. DC has confirmed that the exemption was revoked by mistake and that it will be reinstated. Rental unit is 100% legal and all taxes due have been paid.