Homestead Exemption

Dated: 12/01/2018

Views: 371

When someone mentions "Homestead" we think of pioneers that has claimed land on an open prairie, build a home, have a farm with some cows, pigs, horses and chickens and more. In today's world there are some that has taking to 'Homesteading'. They leave the comforts of the city or suburbia life then go off and purchase a peace of land in the country.  Its a life they have chosen with self-sufficiency and self sustainability with modern farming techniques to yield good crops for canning, dehydrating and freezing. They have small to median size farms including livestock for sales and or trade. Theses Modern Homesteaders may even go off grid but still stay connected  via some modern technology like solar.   A life style, a choice made to go back to a simpler way of life.

So what is really meant when we say 'Homestead Exemption'

It's a protection for the value of the home from property taxes and creditors following the death of a homeowner spouse. It is found in the state statutes and constitutional provision across the USA. In some states it is automatic and in others homeowners must file the claim. Here in Texas we must complete the application for our primary residence that we own to receive the exemption.Texas Homestead Exemption Application.
The legal purposes of a homestead simply means a person's primary residence. The term homestead exemption can refer to the exemption of the property tax a homeowner can claim as well as homestead protection. This protection protects a person's primary residence of a financial hardship, such as a death of a spouse. The surviving spouse, for example, may be faced with large medial bills they are not able to afford so they opt to sell their property or claim bankruptcy. Fortunately the homestead exemption generally protect a primary residence from a forced sale by the creditors. The exemption was designed to help with surviving spouse and children to keep their home. However it is not automatic in some states. Homeowners must file an application for the homestead exemption with their appropriate government.The exemptions amounts vary in large form state to state and some states don't even have one. So be informed about your state and where you can get your exemption form from. Variations are from no exemptions to max dollar amounts allowed to exempt, size of land meaning acreage amounts, and also limits on dollar value of the home before allowing to claim a bankruptcy. Note: federal and state has there own bankruptcy exemption criteria and amounts. Homeowners may chose to claim the federal instead of a state exemption pending on the state homeowners reside in. So know your state and always seek legal advise.

Homestead exemption also provide some relief from property tax. Homeowners who meet certain condition, such as a disable person or a veteran or both, and 65 or older person may claim additional exemption over the normal relief they would get for claiming the homestead exemption here in Texas.  Note: There a few other exemptions such as agriculture exemptions. Therefore consulting with a qualified tax attorney will help get the most from the homestead law.

Image titleIn Texas we must file our Homestead exemption for a property that we own and is our primary residence to the appraisal district office with all supporting documentation as stated in the application in each county in which the property is located generally between January 1 and April 30 of the year for which the exemption is requested.

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Awilda Caberto

I am based in the greater Northwest Austin, TX area and I am determined to be the real estate consultant of choice and have some fun while we are looking for your next home or Lot. Just to share a b....

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