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Old 11-20-2015, 02:01 PM
 
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I'm planning to purchase a house early 2016 and I was told by my lender that if I purchase before end of 2015 I will be able to claim Homestead exemption for 2016 and not have to wait till 2017.
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Old 11-20-2015, 02:07 PM
 
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It lowers the taxable value of your house, how much depends on what that exemption is locally
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Old 11-20-2015, 02:08 PM
 
946 posts, read 1,139,237 times
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Quote:
Originally Posted by Lowexpectations View Post
It lowers the taxable value of your house, how much depends on what that exemption is locally
Would I have to wait till 2017 if I don't purchase in 2015?
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Old 11-20-2015, 02:12 PM
 
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Quote:
Originally Posted by surferdude949 View Post
Would I have to wait till 2017 if I don't purchase in 2015?
Yes, you would have to close by 12/31 to claim the homestead for the following year
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Old 11-20-2015, 05:57 PM
 
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You need to be the owner of record and it be your primary residence on January 1st of the year you want to claim the exemption. If you purchase an existing home, you will pay taxes in the year of the purchase under the previous owners homestead, if filed.

In the case of a new build (or a secondary/investment property) you will not get the homestead in the year of the transaction.
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Old 11-20-2015, 06:10 PM
 
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If you buy in 2016, you will pay pay $15000 or $25000 multiplied by your tax rate. For example, $25,000 exemption mutlipled by 2.5% = $625.

They are likely trying to persuade you to buy NOW so they can get a bigger bonus this year for closings. No need to rush a home purchase over $600 or so.
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Old 11-20-2015, 08:09 PM
 
26,194 posts, read 21,625,027 times
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Quote:
Originally Posted by right View Post
If you buy in 2016, you will pay pay $15000 or $25000 multiplied by your tax rate. For example, $25,000 exemption mutlipled by 2.5% = $625.

They are likely trying to persuade you to buy NOW so they can get a bigger bonus this year for closings. No need to rush a home purchase over $600 or so.

I'm not sure how you are coming up with your calculation but it isn't correct for the houston area
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Old 11-20-2015, 09:51 PM
 
1,237 posts, read 2,022,358 times
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Quote:
Originally Posted by right View Post
If you buy in 2016, you will pay pay $15000 or $25000 multiplied by your tax rate. For example, $25,000 exemption mutlipled by 2.5% = $625.

They are likely trying to persuade you to buy NOW so they can get a bigger bonus this year for closings. No need to rush a home purchase over $600 or so.
While this may be the case somewhere in Houston, this blanket statement is inaccurate. It will depend on the taxing authorities for a particular property. Look up neighboring properties on the county tax rolls to see what kind of difference it will make on your taxes. For example, here is the direct link to the Harris County property search:

HCAD Real Property Records

You can use google to find the ones for your county.
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Old 11-20-2015, 10:47 PM
 
Location: Houston, TX
2,052 posts, read 5,878,282 times
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The Homestead exemption can drop your total taxes like 8% to 20% based on where you buy and how much you pay, and it is all based on the specific taxing authorities for your new house. I set up a couple of spreadsheets that calculate the expected exemptions for homes in the Cy Fair, Katy, and Ft Bend areas for my boss since she is buying a house. FWIW, my exemptions on a $250K house in Cy Fair drops my taxes about 20%, while my boss's $240K house in Katy is only dropped by 9% due to the fact Cy Fair offers a full 20% off, PLUS the state mandated $25K exemption so I only pay school taxes on $175K. My total tax savings is about $1,280 per year, while her savings will be about $650.
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