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1. What should I do if I sell my home, move out or the qualifying applicant passes away?

Within 30 days of selling your home please notify the Exemptions & Deferrals Division 703-737-8557 that you have sold the home. Tax Relief will be stopped at the end of the full month prior to the sale.

If you move out to permanently reside elsewhere please notify the Exemptions & Deferrals Division at 703-737-8557 within 30 days. Tax Relief will be stopped at the end of the full month prior to your vacating the residence.

If an applicant passes away please notify the Exemptions & Deferrals Division at 703-737-8557 within 30 days. If that person was the only qualifying applicant then Tax Relief will be stopped at the end of the full month prior to the date of death. If there is another qualifying applicant Tax Relief will continue.

2. Are distributions from my individual retirement account (IRA) or annuities included in my gross household income computation for tax relief purposes?

Yes. Numerous Virginia Attorney General opinions have concluded that distributions from IRAs and annuities are income for tax relief purposes, even if a portion or all of the distribution is a return of the taxpayer’s contribution or investment.

3. I am separated from my spouse. Do I still need to include his or her net worth even though he or she is not an owner of the property?

Yes. The Virginia Attorney General recently issued an opinion concluding that all individuals that are legally married must include both the applicant’s net worth and his or her spouse’s net worth to determine eligibility for tax relief.

4. How do I determine the value of my additional acreage so that I can calculate my net worth?

The Commissioner of the Revenue's Office determines first, first three and first ten acre values. It is not necessary for you to calculate these figures.

5. What is total and permanent disability?

The term "permanently and totally disabled" means unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment or deformity which can be expected to result in death or can be expected to last for the duration of such person's life; however, a certification pursuant to 42 U.S.C. § 423 (d) by the Social Security Administration, so long as the person remains eligible for such Social Security benefits, shall be deemed to satisfy such definition in this section.

If less than 65 years of age, the applicant must provide, with the first application filed, a disability certification by the Social Security Administration, the Department of Veterans Affairs or the Railroad Retirement Board. If ineligible for certification by one of these agencies, the applicant must provide sworn affidavits from two medical doctors licensed in Virginia or two military officers who practice medicine in the United States Armed Forces. Blank affidavits are available online here or in our office for completion by your physicians.

6. Must my application or certification be notarized?

No, as of 2022 neither the application nor the certification requires notarized signatures.

7. If I have applied for Loudoun County Tax Relief and my application has not been approved by the date my taxes are due, should I pay the taxes?

Yes. The tax relief qualification process requires a detailed analysis of applications and supporting documentation. Consequently, tax relief is not always granted by the date taxes are due. If you have paid any portion of real estate taxes for the current tax year before completion of the review process, any taxes paid will be refunded upon approval of the tax relief application, if all other local taxes are current.

8. If I am granted tax relief after the 1st half real property tax deadline, which is June 5th, will relief be granted for the entire year?

If the property consists of one dwelling on three acres of land or less and there are no other taxable structures, the real estate tax will be eliminated in its entirety for the current calendar year. The real property tax exemption will be prorated upon the sale of the property or the death of the last qualifying owner.

9. Do I have to be a Loudoun County resident for a minimum period of time before applying for tax relief?

No. Virginia Code § 58.1-3212 specifically prohibits localities from instituting a length of residency requirement for this program. However, you must have owned and occupied the subject property on January 1 of the tax year for which you are seeking relief.

10. What is a sole dwelling? Can I be absent from my home and continue to receive tax relief?

A sole dwelling is the only dwelling maintained by the tax relief applicant as his or her full-time residence. Virginia permits localities to provide a real estate tax exemption on “real estate … designed for continuous habitation owned by, and occupied as the sole dwelling…”

The tax relief available to an otherwise qualified applicant should not be affected if he or she randomly and sporadically visits his or her family or friends and sleeps away from home for indeterminate, short periods of time. However, if a person regularly resides in another house during a certain period of time each year, that person will likely not qualify for tax relief.

An individual residing in a hospital, nursing home, convalescent home or other facilities for physical or mental care for an extended period of time, shall not lose his or her exemption, as long as the applicant’s dwelling is not be rented.

Each individual’s situation will be different and could result in the need for the taxpayer to provide an explanation and/or additional documentation to make a qualification determination.

11. How will the forgiveness of my Paycheck Protection Program (PPP) loan be handled for Tax Relief?

In accordance with the IRS Revenue Ruling 2021-02 which states “that any amount that otherwise would be includible in an eligible recipient’s gross income by reason of such forgiveness is excluded from gross income,” the forgiveness of the PPP loans will not be considered income for purposes of calculating the Gross Income for Tax Relief purposes.

12. Did the qualifying income or net worth limits increase?

The qualifying income and net worth limits for the 2023 Real Estate Tax Relief applications remain the same as they were for 2022.  Please see the chart on https://www.loudoun.gov/5002/Real-Property-Tax-Exemption-Elderly-Disa for the income limits.

13. The Tax Relief application requests Business Income. I am self-employed and file a Schedule C for my business, what amount should I put on the Tax Relief application?

Please contact a Tax Relief Specialist at 703-737-8557 to discuss your business.  Gross Income for tax relief purposes is the income available to meet expenses.  A deduction of necessary business expenses that reduce the income available to meet personal expenses is allowed.  Other non-cash deductions on the Schedule C or deductions that are not necessary to maintain the business are not deductions for Tax Relief income calculation purposes.