Houston, TX · Member since 2016 · 51 posts · 8 votes
Hello,
I recently bought my primary residence located in Houston, TX (Harris county) in February, 2016. I would like to claim this property as my homestead. I have learned that there are two main advantages:
1. I can write off a large percentage of my home value from property taxes if I file for the homestead exemption.
2. If I sell the home, I do not have to pay capital gains on the first $250k.
I have a few questions:
1. Are claiming a homestead and filing for the homestead exemption different?
2. What is/are the correct form(s) to file for the homestead or claim the homestead exemption? (I see a document form 11.13 for Harris county that looks right, but I am not sure).
3. Will I be able to lower my tax basis for the 2016 tax year? The soonest I can file is Jan 1, 2017. I'm hoping that submitting a form on this date will be to lower my tax basis for the 2016 tax year (not the 2017 tax year)
4. Where do I submit these forms?
5. How can I check that these forms are received? How can I verify the property value basis that was used to calculate my property taxes?
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
9y
Your thinking homestead exemption on the tax part. Filling for homestead as pertaining to your house is an old law in the books that dates back to the Republic of Texas. It's still valid too but gives you some relief toward the bankruptcy laws. Look up Lone Star law online and you can get a better picture of what it is.
Broker/Flipper · Austin, TX · Member since 2013 · 4k+ posts · 4k+ votes
9y
Several different definitions of Homestead in Texas being talked about here :
1) Homestead exemption for property tax purposes- You will need to file the form using the link above with the Harris County Appraisal District. This will save you a few hundred dollars a year in property taxes along with limiting the amount that they can increase your property appraisal each year(Good Thing). Keep in mind that the HCAD appraised value has nothing to do with the actual value of your property. You can find out the current value using the link above as well
2) Homestead in Texas provides protection from creditors- You do not need to file or do anything. Your homestead is protected from most creditors, except mortgagor/Property tax delinquency/IRS. Your homestead cannot be seized to satisfy a debt or judgement(most)
3) Homestead- If you live in your house for more than 2 years(simple explanation) you would have no capital gains on the first $250k/$500k if married
Developer · Pearland, TX · Member since 2016 · 91 posts · 13 votes
9y
Hello Alexander,
Congratulations in purchasing your new primary residence!
The Form 11.13 is correct for you to file an APPLICATION for RESIDENCE HOMESTEAD EXEMPTION. You can click on or copy and paste in your browser the following link to get the Form directly- http://www.hcad.org/forms/default.asp?form=7
Secondly, the application and required documentation as indicated in the Form must be completed no later than April 30, but can file as early as January 1st.
Thirdly, the residence homestead exemption is up to 20% of a property's appraised value. The Appraised Value is what HCAD designates and NOT by a private residential appraiser. For example, when you go to HCTAX.NET, you will see in the following link for the address at 2315 Huldy St, that there are 8 Taxing Jurisdictions: http://www.hctax.net/Property/TaxStatement?Account...
Six of the Jurisdictions exempt the property at 20%, but Houston ISD is at 24% and Houston Community College Systems is at 10%. Exemptions ranging from $53,213 - $131,425 and based off a $533,287 Total Market Value. (NOTE: As a disclaimer, I do not know the owners of this property but I had done some research earlier this year, for a client that wanted their house to be exempted, and found that it was interesting that no matter what the value of what your home is you can still apply for an exemption as long as the home is your primary residence.) https://www.wilco.org/Portals/0/Departments/Tax%20...
In the above link, although you can read the entire 21 page document, page 3 is most fitting to your situation.
The address to submit the FORM 11.13 is on the Application. They also have a phone number and physical address on the Application. I tried to include this information to make it easier for you. But, BiggerPockets has a rule that this is not allowed if the entity or person is not a BiggerPockets member.
Finally, in regards to claiming and filing. First, you submit/file the Application and once approved you can then claim that property as a homestead exemption.
Houston, TX · Member since 2016 · 51 posts · 8 votes
9y
@Jacqueline Peterson Thank you for all the great information! I will mail the form 11.13 shortly! Just to clarify your last sentence... to "claim" my homestead exemption, I will do this while filling out my Taxes next year? Or is there another form to actually claim the exemption?
One last question... will I have to do this every year? Or do I only need to do this once if I remain at the same address?
Developer · Pearland, TX · Member since 2016 · 91 posts · 13 votes
9y
Good Morning Alexander,
I am happy to hear from you that you thought the information that I provided was helpful.
I believe that once you are approved for the exemption you should get a Notice from HCAD allowing you to "claim" your homestead exemption. You may want to call the phone number on the top of the Application Form to make sure that there is no additional form to request when filing your taxes for next year in regards to the "claim."
It is my understanding that that once you receive your approval you do not have to apply on an annual basis unless you move to another house. You can only have one home to claim as a homestead exemption as long as that home is considered your primary residence/address.