Homestead Exemptions: Will They Affect My Taxes?
When people deal with creditors’ claims, one option that almost seems inevitable is that they may find themselves forced to sell their home to pay off the debts owed; however, what many homeowners don’t realize is that they could be eligible for what is known as a homestead exemption. Along with helping guard a property against creditors, it can also substantially reduce or possibly even eliminate the paying of property taxes. However, since there are numerous complexities involved in gaining a homestead exemption, turn to expert legal guidance from Orlando FL real estate lawyers at Nishad Khan.
Exemption Amounts and Application May Vary
Though exemption amounts vary from state to state, Florida residents will find the Sunshine State has no maximum dollar amount regarding homestead exemptions. Florida homestead laws protect a homestead based on certain acreage requirements. If the homestead is located within a municipality, only up to one-half acre may be protected by the homestead exemption. If the homestead is located outside a municipality, up to 160 acres may be protected by the homestead exemption. Further, according to state law, an exemption may be granted provided that the following requirements are met:
However, if your homestead property was purchased within 1,215 days prior to filing for bankruptcy, ,limits on the exemption may apply. Therefore, always rely on the advice of Orlando FL real estate lawyers at Nishad Khan.
Creditors’ Claims Exemption
Subject to certain limitations, the homestead exemption offers an exemption from creditors’ claims with no maximum capped amount. This exemption exempts your home from forced sale by creditors.
Property Tax Relief
As for property tax relief, the homestead exemption will allow a certain percentage to be exempt from taxes. In Florida, up to a $50,000 tax exemption will be applied to homestead property. Additionally, certain other tax benefits apply provided that certain conditions are met, such as being 65 years of age or older, disabled, or perhaps a military veteran. Since varying amounts of documentation will be needed to gain a homestead exemption, work with an experienced and knowledgeable attorney who handles these cases on a regular basis.
Lastly, since gaining a homestead exemption may be the difference between keeping or losing your home to a forced sale, don’t leave anything to chance. Instead, schedule your consultation today with Orlando FL real estate lawyers at Nishad Khan.