Are there military tax benefits?

[austindoxie1972]

Thanks Steel Man -- you're right about the celing!

[dmarie123]

I don't know much about it, I just know it exists because I have heard our accountant talk about it, and we had to remove it in order to rent our house. Our property manager gave us a form to remove it, since we will be renting our house and not living in it, it doesn't count as a homestead.

What I understand, if real-estate value skyrocket (yeah right), they can only increase your assessed value by 10%. That keeps you from having to pay taxes on a $150,000 one year, and then $300,000 next year. Which is a jump that people in California saw not to many years ago.

It's not that helpful when property values are only inching up.

[Steel Man]

Originally Posted by dmarie123

I don't know much about it, I just know it exists because I have heard our accountant talk about it, and we had to remove it in order to rent our house. Our property manager gave us a form to remove it, since we will be renting our house and not living in it, it doesn't count as a homestead.

What I understand, if real-estate value skyrocket (yeah right), they can only increase your assessed value by 10%. That keeps you from having to pay taxes on a $150,000 one year, and then $300,000 next year. Which is a jump that people in California saw not to many years ago.

It's not that helpful when property values are only inching up.

That is true; however, if you're renting the house and the Homestead Exemption was removed, then all bets are off and they can raise the appraised value by more than 10%. Of course, you can always protest the new value.

Technically, BCAD can raise anyone's appraised value by more than 10%. When you have the Homestead Exemption, then the amount over 10% is subtracted and the amount you are taxed on is the "assessed" value.

[NathanScott]

Also the Texas Vet Land Board can help lower your interest rate when purchasing a home. It really helps out when you are a 30% or more disabled vet. It takes an additional .50% off of the going rate but can only be used for purchasing a home not refinancing. New construction has to be energy star certified.

VLB | Land Mortgages

[majormadmax]

Originally Posted by NathanScott

Also the Texas Vet Land Board can help lower your interest rate when purchasing a home. It really helps out when you are a 30% or more disabled vet. It takes an additional .50% off of the going rate but can only be used for purchasing a home not refinancing. New construction has to be energy star certified.

VLB | Land Mortgages

Just note that to be eligible, you have to have...

Listed Texas as the home of record at the time of entry into the military OR must have been a legal resident of Texas for at least twelve consecutive months immediately prior to filing an application OR be on active military duty, stationed in Texas, and have changed his/her state of legal residency to Texas. The applicant must also be a bona fide resident of Texas at the time the application is made. (A "bona fide resident" is someone who is living in Texas with the intent to remain in Texas.) This may include a Texas resident currently serving on active military duty outside of Texas. Presence in Texas due solely to military service may not establish bona fide residency.