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 Re: Property tax advice - disabled/over 65
[Re: Hard Rain]
#13997423
05/14/21 02:50 PM
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Joined: Sep 2005
Posts: 27,571
Uncle Zeek
OP
aka "Dad"
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OP
aka "Dad"
Joined: Sep 2005
Posts: 27,571 |
In this case it is really not all that big of a break. I'm staying out of the rest of the comments and discussion on this thread, but wanted to respond to this. The tax ceiling and transfer of the tax ceiling are actually huge for seniors who stay in their home, or sell their home and buy a different one. Client case in point - let's call this a hypothetical, even though it's unlikely that anyone here knows the person - hypothetical person bought a house in 2008 for $90,000. Person turned 65 in 2010 and had the taxes frozen when the house appraised for $105,000 so that homeowner was only paying about $1,700 in property taxes. Fast forward to this year, and the house is appraising for over $230,000 - the property taxes would be about $4,600 with a normal homestead exemption, but grandma/grandpa is still paying @ $1,700. That's significant for a senior citizen on fixed SSA income. If the hypothetical old person sold this house and bought a different one, the tax ceiling on the new house would be about 37% of what the taxes otherwise would be.
Last edited by Uncle Zeek; 05/14/21 02:51 PM.
"Decency is not news; it is buried in the obituaries --but it is a force stronger than crime" ~ Robert A. Heinlein
Artim Law Firm, PLLC
Estate planning & tax attorney
2250 Morriss Road, Suite 205, Flower Mound, Texas 75028
972-746-0758 mobile
zac@artimlegal.com
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Re: Property tax advice - disabled/over 65
[Re: Uncle Zeek]
#13997433
05/14/21 02:53 PM
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Joined: Jul 2005
Posts: 23,043
Hard Rain
TFF Guru
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TFF Guru
Joined: Jul 2005
Posts: 23,043 |
In this case it is really not all that big of a break. I'm staying out of the rest of the comments and discussion on this thread, but wanted to respond to this. The tax ceiling and transfer of the tax ceiling are actually huge for seniors who stay in their home, or sell their home and buy a different one. Client case in point - let's call this a hypothetical, even though it's unlikely that anyone here knows the person - hypothetical person bought a house in 2008 for $90,000. Person turned 65 in 2010 and had the taxes frozen when the house appraised for $105,000 so that homeowner was only paying about $1,700 in property taxes. Fast forward to this year, and the house is appraising for over $230,000 - the property taxes would be about $4,600 with a normal homestead exemption, but grandma/grandpa is still paying @ $1,700. That's significant for a senior citizen on fixed SSA income. If the hypothetical old person sold this house and bought a different one, the tax ceiling on the new house would be about 37% of what the taxes otherwise would be. You are right Zeek in the long run it can/will be a big deal but not really a game changer near-term.
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