I own a home that is now a rental property. I still have a homestead exemption on it. Utilities, etc. are still in my name. I got married and now live in the house my wife owns, which she has a homestead exemption on. How long can I keep that homestead exemption on my rental? Can they come after me for more taxes if they found out I don't live there anymore? Am I supposed to report that to the appraisal district? Obviously, I'd like to keep both.
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homestead exemption.
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Last: 5 mo ago by JJxvi
How long can I keep that homestead exemption on my rental?
For as long as it takes them to figure out that you're skirting the law. Maybe soon, maybe never.
Can they come after me for more taxes if they found out I don't live there anymore?
Yes, they can come after you for multiple years and penalties and interest for the tax you should have owed in those years.
Am I supposed to report that to the appraisal district?
Yes, you are supposed to notify them when you no longer qualify for an exemption that you've applied for.
For as long as it takes them to figure out that you're skirting the law. Maybe soon, maybe never.
Can they come after me for more taxes if they found out I don't live there anymore?
Yes, they can come after you for multiple years and penalties and interest for the tax you should have owed in those years.
Am I supposed to report that to the appraisal district?
Yes, you are supposed to notify them when you no longer qualify for an exemption that you've applied for.
Exactly what I was afraid of.
A married couple can't have two homestead exemptions, which makes sense. No other rental property owner can claim a homestead exemption on a property that isn't their homestead.
Property taxes are one of the biggest thefts perpetuated by the government, so I don't mind flying under the radar and avoiding them for as long as possible. The idea that you never actually own your home sends me into a fit of rage like nothing else. Tax avoidance is the American way. But, if they can come after you for unpaid tax and interest, it's worth doing it the "right way".
Aggie honor code comes to mind.
Elaborate, collaborate, and borrow my friend.
rebelag62 said:
Elaborate, collaborate, and borrow my friend.
I know you said you'll likely report it since they can come after you for back taxes.
I'll just say people are nosey as hell. There have been multiple threads on this site about people looking up houses on their street or specific people and seeing they have multiple homesteads (in situations very similar to yours) and asking what they should do about it.
depending on how many years you have "skirted" by; the penalties and interest on back taxes are going to be SUBSTANTIAL. CAD / Tax Assessors are required to audit for this now (written into past year's property tax law). You could be looking at a six-figure settlement.
Property taxes are bullsh, but as mentioned, your biggest risk to flying under the radar would be nosy neighbors
Maybe just play dumb if ever called on it. With the homestead exemption in Tx going up to 100,000, that's a big difference.
Interestingly, a Beaumont school superintendent got caught with 3 different homes all getting a homestead exemption in Texas. He had kept 2 homes from previous towns as rentals plus the one he had in Beaumont.
Iirc, he just claimed it was an honest mistake and paid the additional taxes on the 2 out of town homes.
Interestingly, a Beaumont school superintendent got caught with 3 different homes all getting a homestead exemption in Texas. He had kept 2 homes from previous towns as rentals plus the one he had in Beaumont.
Iirc, he just claimed it was an honest mistake and paid the additional taxes on the 2 out of town homes.
rebelag62
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That's not quite true. When my wife and I married she owned a house in one town and I owned a house in another town 4 hours away.
Because of work and my kids, who I was raising, we lived apart for 5 1/2 years. I kept the homestead exemption on my home that I lived in with my kids and had owned for years. She kept the homestead exemption on the home she owned and had lived in for a few years.
Actually worked out pretty well. We did spend a lot of money on cars and tires though.
Because of work and my kids, who I was raising, we lived apart for 5 1/2 years. I kept the homestead exemption on my home that I lived in with my kids and had owned for years. She kept the homestead exemption on the home she owned and had lived in for a few years.
Actually worked out pretty well. We did spend a lot of money on cars and tires though.
Or you can notify them. They never remove it. You sell the house and then they go after the new homeowner.JJxvi said:
How long can I keep that homestead exemption on my rental?
For as long as it takes them to figure out that you're skirting the law. Maybe soon, maybe never.
Can they come after me for more taxes if they found out I don't live there anymore?
Yes, they can come after you for multiple years and penalties and interest for the tax you should have owed in those years.
Am I supposed to report that to the appraisal district?
Yes, you are supposed to notify them when you no longer qualify for an exemption that you've applied for.
SW AG80 said:
That's not quite true. When my wife and I married she owned a house in one town and I owned a house in another town 4 hours away.
Because of work and my kids, who I was raising, we lived apart for 5 1/2 years. I kept the homestead exemption on my home that I lived in with my kids and had owned for years. She kept the homestead exemption on the home she owned and had lived in for a few years.
Actually worked out pretty well. We did spend a lot of money on cars and tires though.
I'm sure the two counties didn't figure it out but it's still not legal, although I think you get to keep the exemptions for the remainder of the year if you already have them.
Also way less likely you'll get caught if you are actually occupying the home vs renting it out.
Important update on this, regarding legitimate cases where the husband and wife have different primary residence.
https://www.kens5.com/article/news/local/texas-supreme-court-ruling-bexar-homestead-exemption-case-san-antonio/273-8691dcd6-c003-4369-8183-5f055e4cdff9
https://www.kens5.com/article/news/local/texas-supreme-court-ruling-bexar-homestead-exemption-case-san-antonio/273-8691dcd6-c003-4369-8183-5f055e4cdff9
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