Posted on: 12th Aug, 2007 10:17am
Through homestead exemptions, you get some relief from paying taxes on your property. Usually, if you use your home as the primary residence, then you are eligible for these deductions. This lowers down assessed value of your property on the basis of which taxes are calculated. For example, say the appraised value of your house is $120,000 and the homestead exemption amount is $15,000, then taxes will be calculated on the property value worth of $105,000.
If you use your home as primary residence, then you can qualify for this deduction. The home should be your primary residence as on 1st January of the tax assessment year. In case you’re a disabled or if your age is more than 65, then you are not required to fulfill these criteria to get the benefits of deductions.
In order to get property tax relief, you need to file for homestead exemptions. Steps that you need to follow while doing so are listed below.
Eligibility criteria for homestead exemptions
If you use your home as primary residence, then you can qualify for this deduction. The home should be your primary residence as on 1st January of the tax assessment year. In case you’re a disabled or if your age is more than 65, then you are not required to fulfill these criteria to get the benefits of deductions.
Filing homestead exemptions
In order to get property tax relief, you need to file for homestead exemptions. Steps that you need to follow while doing so are listed below.
- You need to first obtain the homestead-exemption application form in your state. Here, it is to be noted that application forms vary from state to state. You can easily download the form and get a printout of it by visiting the website of the revenue department of your state. Otherwise, you can get the form by visiting the local tax office.
- You need to fill in the application form accurately. All the details should be filled in correctly.
- Finally, you have to file the application with your local tax office. In some states, you can file the application online too.
Does a homestead exemption mean you don't have to pay property taxes at all? For the year or forever? is it recurring?
Do most people qualify? Is it only for people who can't afford to pay their property taxes? What if parents had a homestead exemption but then they gave the house to their son?
Do most people qualify? Is it only for people who can't afford to pay their property taxes? What if parents had a homestead exemption but then they gave the house to their son?
Hi Cmill,
Homestead exemptions protects part of the value of your home from taxation. The general homestead exemption is $15,000. It means that you don't have to pay any taxes if your home value is within $15,000. To qualify for the exemption, the home owner must use the home as his primary residence. The homeowner may also qualify for the exemption if he is aged 65 years or above. Finally, for the Homestead Exemption you will have to apply at the office of the County Auditor.
Now, if your father gives the house to their son, then he will have to transfer the homestead exemption in his name as he will be getting ownership rights over the property after the transfer.
Homestead exemptions protects part of the value of your home from taxation. The general homestead exemption is $15,000. It means that you don't have to pay any taxes if your home value is within $15,000. To qualify for the exemption, the home owner must use the home as his primary residence. The homeowner may also qualify for the exemption if he is aged 65 years or above. Finally, for the Homestead Exemption you will have to apply at the office of the County Auditor.
Now, if your father gives the house to their son, then he will have to transfer the homestead exemption in his name as he will be getting ownership rights over the property after the transfer.
Hi Mill,
"Does a homestead exemption mean you don't have to pay property taxes at all?"
No, its does not like that you do not have to pay the property tax at all. Imposing homestead exemption, you get exemption of a fixed amount on total assessed value of property. For example, if in your state fixed exemption amount is $50,000 and the total property value is $150,000, then calculated assessed value is $100,000.
"Do most people qualify?"
Regarding qualification and even exemption amount get varies with state-to-state. If you can pass on the state where you are living, then it will be easier us to provide you actual eligibility criteria.
Thanks
"Does a homestead exemption mean you don't have to pay property taxes at all?"
No, its does not like that you do not have to pay the property tax at all. Imposing homestead exemption, you get exemption of a fixed amount on total assessed value of property. For example, if in your state fixed exemption amount is $50,000 and the total property value is $150,000, then calculated assessed value is $100,000.
"Do most people qualify?"
Regarding qualification and even exemption amount get varies with state-to-state. If you can pass on the state where you are living, then it will be easier us to provide you actual eligibility criteria.
Thanks
Cmill to learn about homestead exemptions - http://en.wikipedia.org/wiki/Homestead_exemption
I have a townhome worth 181,000. It is and has been my primary residence for 10 years in Lakewood OH. Will I be able to get an exemption and for how much? Thank you.
Hi Juanita,
As far as I know, you can get a homestead exemption on a town-home. You can contact your county property appraiser who can give you the details regarding this.
Thanks,
Jerry
As far as I know, you can get a homestead exemption on a town-home. You can contact your county property appraiser who can give you the details regarding this.
Thanks,
Jerry
Hi, I'm A first time buyer, i just bought my home a year ago today.. what kind of paper work do I need to take to the county court house. Also what affect will it have on my Income tax return?? thank you..
You will have to apply for homestead first and see if you can qualify for it. As far as property documents are concerned, you will have to record your property deed at the county recorder's office where the property is located.
My husband passed 2 mths ago and left me the house (my name is on the deed) but he to an equity loan out in his own name. I was paying the loan an automatic deduction from cking. And they closed the acc. said I don't have any access to it. Can they do anything to the house, like add it to the morgage?
Hi Martha,
Did the bank give you any reason as to why they suddenly closed your account? I did not understand what you wanted to say by "Can they do anything to the house, like add it to the mortgage?" The mortgage has been taken using the property as the collateral.
Thanks,
Jerry
Did the bank give you any reason as to why they suddenly closed your account? I did not understand what you wanted to say by "Can they do anything to the house, like add it to the mortgage?" The mortgage has been taken using the property as the collateral.
Thanks,
Jerry
can I homestead my house as a precaution against lawsuits ?
Welcome Sylvia,
As far as I know, homestead protects a property from forced sale in order to meet the demands of the creditors. It also provides the surviving spouse with a shelter and also provides an exemption from property taxes which are applied to a home. I don't think homestead will protect your property against lawsuits.
As far as I know, homestead protects a property from forced sale in order to meet the demands of the creditors. It also provides the surviving spouse with a shelter and also provides an exemption from property taxes which are applied to a home. I don't think homestead will protect your property against lawsuits.
How do you Quilify for a Homestead???
You will find a similar discussion regarding homestead in the given link:
http://www.mortgagefit.com/foreclosure/homestead-protectjudgment.html
Thanks
http://www.mortgagefit.com/foreclosure/homestead-protectjudgment.html
Thanks
I own a house in Hubbard County , Minnesota...my daughter lives there so I get homestead privilege for my taxes...I have a house in Michigan and was wondering if I could homestead that..however my second husband to whom I have been married to for seven years owns a home in Minnesota. I signed a prenuptual agreement that excludes me from inheriting his house...it goes to his children...I am not on the deed whatsoever. ...would I be able to Homestead the house in Michigan. What are the basic requirements for me to homestead house in Ironwood Michigan..thanks
I just sent in a message about homesteading in Ironwood Michigan..I stated that I own a house in Minnesota...my daughter lives there so I get homestead taxes I own a home In Ironwood Michigan and am married for the second time..I am not on my husbands deed ...his children are the ones whom the house will be deeded to on the basis that we had a prenuptual agreement done through a lawyer that I will not inherit the house or get any part of it through divorce or death...My taxes are so high in Michigan because I haven't homesteaded it...I pay oaver $1,000.00 on a house worth on tax statement...$21,000 We spend about half the time and both places..sometimes I am in Michigan more and sometimes he is in Minnesota more..please advise me ...SharoLitfin "sheba1945@gmail.com" Will you please send me info to my email adress Thankyou