Tag Archives: Homestead

January 2020 Podcast Video (Dogs Blooper at 2:55), Financial Planning and Capital Market Update – By John Kvale

Hello and Welcome to our January 2020 Financial Planning and Capital Market Update!

If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast audio format as well as Video!

Break In: Dog Blooper at 2:55 for those wanting a chuckle!

Newbies –

We like to articulate our thoughts and review on a Monthly basis our Financial Planning Tips, Capital Markets and current events!

January – 2020 Video

Financial Planning Tip (s) –

Handy New Tax Rates and Table

Early in the month, here in this post, we review the new contribution levels, rates and maximums.

As suspected, we have reviewed this ourselves a ton of times already as 2019 and 2020 levels blur during conversations…

2020 Comp and Retirement Contribution Limits

Homesteading Reminder

In our article here, we remind all of those who may have changed primary residence last year to check their homesteading provisions as this can be a significant saving, depending on your situation.

Examples

  • California exempts the first $7,000 of residential homestead from property taxes.
  • Colorado allows a 50% deduction for up to the first $200,000 (equivalent to a $100,000 exemption if the property is valued at $200,000 or above) for seniors (over age 65) who have lived in their property for ten consecutive years.
  • Georgia allows a 1% HEST only in a few counties.
  • Florida‘s homestead exemption allows an exemption of 160 acres outside of a municipality and one-half an acre inside a municipality.[5]
  • Kentucky, for 2013 and 2014, the exemption has been set at $36,000. Once it is approved, homeowners who are 65 or older do not need to reapply for the homestead exemption each year.[6]
  • Louisiana exempts the first $75,000 of residential homestead from local property taxes.[7]
  • Michigan exempts the homeowner from paying the operating millage of local school districts.
  • Mississippi exemption from all ad valorem taxes assessed to property; this is limited to the first $7,500 of the assessed value or $300 of the actual exempted tax dollars.[8]
  • New York‘s School Tax Relief (STAR) program exempts the first $30,000 of a primary home’s assessed value from school district taxes; the exemption is limited to owners with incomes under $500,000. Additional exemptions are available for people over 65 with a limited income. The STAR program applies only to school taxes; no homestead exemption exists for taxes levied by other municipal entities. New York prevents a New York resident claiming this exemption if the New York resident owns property in another state and claims a similar exemption in that other state.
  • Oklahoma allows a $1000 deduction of the assessed valuation, about $75 to $125 of savings per year, if owners file for homestead exemption with the local county clerk.
  • Rhode Island exempts the first 20% of the home value from property taxes.
  • Texas allows a deduction, with additional exemptions available for county taxes, people over 65 and people who are disabled. It also requires school districts to offer a $25,000 exemption (but not other taxing districts, such as cities and counties).[9] Texas further limits the assessment increase on a homestead to 10% of the prior year’s value.

Helping Close Relatives or Others

During the month, we had multiple Financial Planning questions for close relatives and friends, which were asked, but some what hesitantly…

Wanting to reinforce the fact that we are glad to help, in this article we remind everyone we are not only flattered by the question, but VERY happy to help!

Helping hand adventure-1807524__480.

Tax Forms and Information Reminders

In another handy reference post, here, we discuss the tax form alphabet and more importantly, note the due dates and expected delivery times of the most common tax forms….

1099- R and 1099 Miscellaneous cover 95% of most folks reporting!

We know, it’s tax season again…not everyone’s fav…but we are trying to help make it easier.

Capital Market Comments

The markets finally took notice of the CoronaVirus. As scary as the virus is, modern day medicine and the actual fast spreading of the event and comprehension, unlike SARS which we remember well will likely help stem the fears and spread of the virus.

koyfin_20200201_090411940

Have a Great Day – Talk to you at the end of February!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
street-cents

Protesting that Property Tax – While your there double check your Homestead Exemption too…

Those in the Dallas area know it as DCAD or the Dallas County Appraisal District … the agency that assesses our home property values and then sends us the nice green paper page with the damage due later in the year…..

Property Tax Protest

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If you think your property value has been accessed too high … thereby making your property taxes too high, you may want to protest… Using DCAD or Dallas as an example, there are three different waves of property values accessments that go out at different times, each with different deadlines. (Only one per family, just three different mailings.)

Bottom line, check with the controlling agency in your area for details.

We have found success with these protests when the data is clearly inflated, however we have had more failures than success.

One last item, we have found the greatest success with in-person visits rather than hiring an outside firm, as long as the request is reasonable.

In many cases a mailing or an on-line protest may be a good idea… again check with your controlling agency for details.

Do some legwork by checking other homes of similar nature against yours… while you may think yours is over stated, if you find it understated against similar properties in the respective agency, you might think twice before protesting.

Homesteading Your Home

In the state of Texas and many other states (but not all) across the country, homesteading your home will give you a discount on your property taxes.  Check your individual state for this option and generally you will have had to reside in the home on January 1 of the current year to complete a homestead. Again, check your state, but you will likely have no disadvantage to homesteading your home and will likely only be able to homestead your primary residence.

Here is a good definition of Homesteading from Wikipedia – our biggest favored option is again the discount on our taxes-

Homestead exemption laws typically have four primary features:

1 Preventing the forced sale of a home to meet the demands of creditors, usually except mortgages, mechanics liens, or sales to pay property taxes

2 Providing the surviving spouse with shelter

3 Providing an exemption from property taxes on a home

4 Allowing a tax-exempt homeowner to vote on property tax increases to homeowners over the threshold, by bond or millage requests

For the purposes of statutes, a homestead is the one primary residence of a person, and no other exemption can be claimed on any other property anywhere, even outside the boundaries of the jurisdiction in which the exemption is claimed.

In some states, homestead protection is automatic. In many states, however, homeowners receive the protections of the law only if they file a claim for homestead exemption with the state.

Have a good “Less Property Tax” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

Homestead that House … Travels … Office Hours … MLK Holiday

How about ANOTHER tax saving idea to start 2016 ! Here you go!

Homestead that House

If you purchased a new home last year, it may be time to homestead. Texas in particular, allows most living in their primary residence on January 1 a Homestead exemption, giving them a nice property tax break !

If you are not sure if you have Homestead … just check your local appraisal district .. i.e. Dallas is www.dcad.org

Don’t forget !

Homestead

Travels and Office Hours

Later this week I will be out-of-town, tethered electronically of course, AND the office will be closed on Monday, as well as all US banks, in honor of Martin Luther King Holiday!

Have a great day!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225