Does this carry over to a new owner? For example, a house currently has a $150k homestead cap loss. Appraised at $900K but assessed at $750k. If the house is sold, does the cap loss carry over to the new owner?

ukbb2003 said:

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Does this carry over to a new owner? For example, a house currently has a $150k homestead cap loss. Appraised at $900K but assessed at $750k. If the house is sold, does the cap loss carry over to the new owner?

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Only for the taxes for that current year. Then the value becomes reassessed on Jan 1st of the new year. Where the new taxes are applied to the new owner with whatever new exemptions. So essentially it restarts a new cap loss based on the value it thinks your home was Jan 1st.

Red Pear Luke (BCS) said:

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ukbb2003 said:

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Does this carry over to a new owner? For example, a house currently has a $150k homestead cap loss. Appraised at $900K but assessed at $750k. If the house is sold, does the cap loss carry over to the new owner?

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Only for the taxes for that current year. Then the value becomes reassessed on Jan 1st of the new year. Where the new taxes are applied to the new owner with whatever new exemptions. So essentially it restarts a new cap loss based on the value it thinks your home was Jan 1st.

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Right. So the cap loss would be reduced by the maximum allowed, but would not completely go away.

I'm not sure your question on cap loss not completely eliminated. Yes it would if the appraisal district raises the tax value to full market value.

In your example the district could go to taxing the full 900k. Or more if they estimate more value. Your cap then is the sales price or appraised value of your lenders report.

You own a house in 2023 valued with market value of $900,000. Your assessed value is $750,000 with your homestead exemption.

You sell and close in 2023. The new homeowner applies for a homestead exemption right after they purchase the new property.

On Jan 1, 2024 the market value is $950,000 and the assessed value is $950,000. The only benefit to the homestead exemption in the first full year of ownerships is that the homeowner sees a $40,000 reduction in taxable value for county/ISD (soon to be $100,000 reduction after the November election).

On Jan 1, 2025 the market value is $1.2 million and the assessed value is $1,045,000 million ($950,000+10% of $950,000). They will continue to keep the $100,000 reduction in taxable value as part of their homestead exemption. The 10% homestead cap has now kicked in.

There is no way to pass the $750,000 value or the $150,000 value limitation adjustment to the new homeowner.

jopatura said:

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You own a house in 2023 valued with market value of $900,000. Your assessed value is $750,000 with your homestead exemption.

You sell and close in 2023. The new homeowner applies for a homestead exemption right after they purchase the new property.

On Jan 1, 2024 the market value is $950,000 and the assessed value is $950,000. The only benefit to the homestead exemption in the first full year of ownerships is that the homeowner sees a $40,000 reduction in taxable value for county/ISD (soon to be $100,000 reduction after the November election).

On Jan 1, 2025 the market value is $1.2 million and the assessed value is $1,045,000 million ($950,000+10% of $950,000). They will continue to keep the $100,000 reduction in taxable value as part of their homestead exemption. The 10% homestead cap has now kicked in.

There is no way to pass the $750,000 value or the $150,000 value limitation adjustment to the new homeowner.

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Thank you. This is what I was trying to find out.