For those who purchased and moved into a home in Texas in 2018, it's time to file the "Homestead Exemption" paperwork with your county. This provides the homeowner occupant with a reduced rate, an exemption, from ad valorem taxation, because a portion of the appraised value gets excluded from the taxable value. For most school districts in texas, this amounts to an allowed exemption of $25,000 of the home's value for school taxes. If you're over 65, you also qualify for an additional exemption.
But the homestead tax exemption is only part of the homestead advantage. Owning and residing in a Texas home provides some protection from creditors. To qualify, the homestead would have had to be established before any lien is placed on the property. The protection prevents the forced sale of the property to pay debts and judgements.
Another advantage of homesteading includes the right to occupy the property. This right extends to family members who occupy the home after the owner's death, such as a spouse, minor children, and unmarried children.
As with most matters, please check with an attorney before making decisions regarding legal issues.
For more detailed information on homestead advantages, please read the October 2018 issue of Tierra Grande.
And if you'd like to be able to homestead in the Dallas Metroplex next year at this time, contact me to find a home to homestead!