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You might be eligible for the Property Tax Reduction program if you're an Idaho resident and homeowner. The program could reduce your property taxes by $250 to $1,500 on your home and up to one acre of land. Note: This program won't reduce solid waste, irrigation, or other fees that government entities charge.
The 2023 Idaho Legislature passed tax laws providing property tax reduction, capping the cigar tax, increasing the dependent care tax deduction, and more. Below are some highlights. For more details about the legislation, visit the Legislature's website.
The SALT workaround allows entities to pay tax for its members as a workaround for the $10,000 limit on the federal deduction for state and local taxes.
Form PTE-12 is the reconciliation schedule you include with the entity's Idaho income tax return (Form 41S, Form 65, or Form 66) as required by Idaho Code section 63-3036B. Include each owner's complete information whether the owner has Idaho distributable income or a loss.
Each ABE must pay any tax due on or before April 15 (calendar-year filers), or the fifteenth day of the fourth month following the close of each taxable year. PTEs making the ABE election can't take the Idaho capital gains deduction on the sale of Idaho property.
PTE-01 TAX PAYMENT INSTRUCTIONS (WITHHOLDING) Calculate the amount of income tax to be paid to the Idaho State Tax Commission. Use the highest individual tax rate on the owner's share of Idaho-source distributive income, including guaranteed payments reportable to Idaho as Idaho taxable income. The rate is 7.4%.
Idaho allows a deduction of up to 60% of the capital gain net income from the sale or exchange of qualifying Idaho property.
The SALT tax deduction allows taxpayers to reduce their federally taxable income by as much as $10,000. The deduction is for people who itemize deductions rather than taking the standard deduction ? an amount the IRS allows you to knock off your taxable income without any specific documentation.