Saturday, March 14, 2009

Rep. Engel Pursues Rangel Tax Advantages

You had to know that Rep. Charles Rangel wasn't the only politician to play fast and loose with the tax laws of various states and the federal government. It turns out that Bronx politician Rep. Eliot Engel (D) also tried to play the same game with his homes.

He had been claiming that his Maryland home worth $1 million was his primary residence. By improperly claiming the homeowner credit in Maryland, the Engel family saved $5,000 over three years.
The officials told Engel he doesn't qualify for the homestead exemption, a tax credit only state residents can apply for, because he and his wife Patricia's primary residence is in The Bronx.

Last year, The Post reported that Harlem Rep. Charles Rangel was getting the homestead exemption in DC from 1995 to 2000 - even though his primary residence was in New York, where he had four rent-controlled apartments.

Engel had enjoyed the tax credit since 2005, garnering a discount on his taxes in three consecutive years even as the value of his property in Potomac, one of DC's most affluent suburbs, nearly doubled.

Engel got the credit in 2005 after his wife applied for it, according to state tax officials.

When her application for the credit was initially rejected, Patricia Engel filed again, claiming Maryland as her primary residence by submitting a copy of her state tax return, which she filed individually, as evidence.

She then was approved - even though each Engel votes in New York and has an Empire State driver's license.

The names of both Engels appear on property records for the Maryland home.

The credits saved the couple more than $5,000 over three years. The credit puts a cap of up to 10 percent on the amount of a home's increased value that can be taxed each year.
Don't hold your breath to see whether Congress takes action against Engel. They've yet to take action on Rangel, and continue dragging their feet on Rangel's multiple ethics and criminal acts (tax evasion).

Maryland will not pursue the lost revenue because they approved the credit for the Engel family, even if it was done erroneously. The state has tightened the requirements for the credit since Engel first started seeking the credit, which they denied for 2008. None of that takes away from Engel's shady tax dealings.

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