Property Tax x 20 (Murphy: insurance, private schools, utilities)

[escanlan]

Originally Posted by TeamLynn

I think there is an option if you're over 65 that you don't have to pay......I mean the tax is still due, but they won't foreclose on you if you don't pay....
Either your heirs pay when you're gone, or the tax authorities foreclose if you don't have heirs.

I don't like that option, but seen plenty exercise it.

Check the rules and consequences though....not 100% sure this is correct....

Government agencies are the one group you can not run from and they can take the home for non-payment of taxes. What you are referring to are protections from the homestead act that applies to others trying to force a sale to pay a court mandated settlement.

[astrohip]

Originally Posted by TeamLynn

I think there is an option if you're over 65 that you don't have to pay......I mean the tax is still due, but they won't foreclose on you if you don't pay....
Either your heirs pay when you're gone, or the tax authorities foreclose if you don't have heirs.

I don't like that option, but seen plenty exercise it.

Check the rules and consequences though....not 100% sure this is correct....

Originally Posted by escanlan

Government agencies are the one group you can not run from and they can take the home for non-payment of taxes. What you are referring to are protections from the homestead act that applies to others trying to force a sale to pay a court mandated settlement.

No, there is an actual deferment process. (Links are Harris County, but I think this is a state law)

https://www.hctax.net/Property/TaxBreaks

https://www.hctax.net/Property/PropertyFAQ (click on "deferrals")



If you are a homeowner age 65 or over or disabled, you can stop a judgment or tax sale, or defer (postpone) paying delinquent property taxes on your homestead for as long as you own it and live in it. To postpone your tax payments, file a tax deferral affidavit with your appraisal district. The deferral applies to delinquent property taxes for all of the taxing units that tax your home.

You should be aware that a tax deferral only postpones payments, it does not cancel them. Interest will be added at the rate of 5% annually. Once you no longer own your home or live in it, all the taxes, pre-deferral penalties and interest, together with the 5% deferral interest become due after 180 days. If the taxes remain unpaid, regular penalties and interest accrue and the taxing units may proceed with a lawsuit to collect delinquent taxes through a tax sale.

[Threestep2]

Originally Posted by Wittgenstein's Ghost

But there's not $20MM in value. There's $1MM in value that exists for twenty years. Those aren't the same thing, and it's in no way comparable to $20MM in income.

And the 1MM property was how much when OP bought it 20 years ago? What tax rate is it valued at?

[DFW_FTW]

Originally Posted by Leonard123

Why don't you buy an older house in McKinney. In my neighborhood, property values are never going to go up simply due to age, and I only pay about $600 a year.

So while you're paying $500K, I'll only be out $12K.

Please put down the cigar, joint and bourbon. You only pay $600 a year in property tax???

[20Hope20]

I'll downsize but leaving a home and neighborhood i love is a heart wrenching decision.

Reverse mortgage is beneficial but i would prefer to leave some inheritance for my grandkids.

[Threestep2]

Originally Posted by 20Hope20

I'll downsize but leaving a home and neighborhood i love is a heart wrenching decision.

Reverse mortgage is beneficial but i would prefer to leave some inheritance for my grandkids.

You have known for how long that you will retire?

[escanlan]

Originally Posted by astrohip

No, there is an actual deferment process. (Links are Harris County, but I think this is a state law)

https://www.hctax.net/Property/TaxBreaks

https://www.hctax.net/Property/PropertyFAQ (click on "deferrals")



If you are a homeowner age 65 or over or disabled, you can stop a judgment or tax sale, or defer (postpone) paying delinquent property taxes on your homestead for as long as you own it and live in it. To postpone your tax payments, file a tax deferral affidavit with your appraisal district. The deferral applies to delinquent property taxes for all of the taxing units that tax your home.

You should be aware that a tax deferral only postpones payments, it does not cancel them. Interest will be added at the rate of 5% annually. Once you no longer own your home or live in it, all the taxes, pre-deferral penalties and interest, together with the 5% deferral interest become due after 180 days. If the taxes remain unpaid, regular penalties and interest accrue and the taxing units may proceed with a lawsuit to collect delinquent taxes through a tax sale.

You are 100% CORRECT! Had to look it up but yes you can defer the taxes. This is the actual Texas Statute wording.


https://statutes.capitol.texas.gov/D...X.33.htm#33.06


Very interesting and a great help to elderly who have nobody to leave their property to in the first place. Why not defer the taxes and let the State/County have it when you pass since you won't need it anyhow.


Thanks for the reference as it was well hidden information.

[Leonard123]

Originally Posted by DFW_FTW

Please put down the cigar, joint and bourbon. You only pay $600 a year in property tax???

No, my mistake, that should be $6000. My point still holds. I don't think anyone on this forum has a house as cheap as mine.

[escanlan]

Originally Posted by TeamLynn

I think there is an option if you're over 65 that you don't have to pay......I mean the tax is still due, but they won't foreclose on you if you don't pay....
Either your heirs pay when you're gone, or the tax authorities foreclose if you don't have heirs.

I don't like that option, but seen plenty exercise it.

Check the rules and consequences though....not 100% sure this is correct....

Yes you are correct (see above). For someone that has been exposed to it and seen I do have a question. Are you aware if this is even something that estate planners bring up to their clients who won't have any heirs? I realize you are not an Estate Planner but may have more "on the ground" experience since you do deal in RE. Seems that it can be a very huge help to those needing not to pay the taxes in their latter years.

[Wittgenstein's Ghost]

Originally Posted by Threestep2

And the 1MM property was how much when OP bought it 20 years ago? What tax rate is it valued at?

What does that have to do with my comment about $1MM in value existing for twenty years not being equivalent to $20MM in value?