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Homestead exemption and property tax

WaterH said:
So last year I bought a piece of vacant land. The property tax was $300. This year it was reacessed and the tax went to $1300. WTF. The tax didn’t go up, the value of my property did. I called and asked if it was because I put a power poll, well and dock up. She said “those haven't been accounted for, yet”.
Then she said it went up because of recent sales in that area. I asked her what all sales they were talking about. After a few minutes, she says “I guess it was your sale that made everybody’s value go up.” I said “what if I’m a dumb ass and paid way too much”? She said “it’s still accessed less than what you paid”. “ I doubt you would sell it for that.”

Have any of you had your property tax quadruple in one year? I’ve owned all kinds of property and I’ve never had it double.

Anyways, my wife and I were discussing this and we came up with an idea. What if we say we are estranged and She lives there and I live in our house? Can she claim homestead exemption while I claim it here? It doesn’t matter if they caught us here in bed, we could be “working on our marriage.” Would we have to be legally separated? Is there a downside to that?

Of course, we don’t have a house down there, but we should soon have yacht on the dock. Can you claim homestead on a yacht?
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Welcome to Texas by way of California :mad3:

Fight it all you can, every dollar you let them levy to your property will be accessed and taxed in perpetuity.
 
bgaidan said:
*varies greatly by location

In my state, the assessment is supposed to be the market value at the time of the assessment. That value stays the same until the next assessment so obviously it's only likely closely accurate the first year.
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But that is the definition of market price right? The dumbass set the market...

(I'm on your team here)
 
jeeptj19992001 said:
This is how new yuck does it.
This does not include the school tax....
That is 2x the county /town tax
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Way to doxx yourself:laughing::lmao:
 
WaterH said:
A long time ago when I lived in Pennsylvania, my dad explained to me the Assessed value is not market value. He said it should approximate the value 20 years prior. (If it was the same, ie 1500 sq ft house) That way, it is not based on market fluctuations. It made sense because everybody’s value was considerably less than current market. My dad was not prone to BS. Not sure where he got that. Have any of you heard of such? I’ve never heard of someone’s property being assessed at market, but mine is pretty close at this point.
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Completely FOS.
 
WaterH said:
If I had paid a a 100 K in cash, the value would go down by that much.
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rockota said:
Insert “thats not how it works” meme here
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They raised the assessed value in my area based on my purchase. (The appraiser girl couldn’t find one other sale in my area) So if I gave the seller a hundred grand in cash, the price at the court house would be very close to the previous assessed value and nothing changes. Hell my neighbors would have to buy me dinner for doing it that way. Now they probably hate me.
 
WaterH said:
They raised the assessed value in my area based on my purchase. (The appraiser girl couldn’t find one other sale in my area) So if I gave the seller a hundred grand in cash, the price at the court house would be very close to the previous assessed value and nothing changes. Hell my neighbors would have to buy me dinner for doing it that way. Now they probably hate me.
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That’s not it works. :rolleyes: you should probably do 15 minutes of research. What you’re suggesting is actually illegal in (at least) states.

Not to mention… you cant use your own purchase as a comp.
 
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So what no private contracting ?

Use a financial vehicle to facilitate property transfer, no ones the wiser.
 
rockota said:
That’s not it works. :rolleyes: you should probably do 15 minutes of research. What you’re suggesting is actually illegal in (at least) states.

Not to mention… you can use your own purchase as a comp.
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Illegal or not, that is how it works.
 
Fight it. I fight property assessment every year on every property we have up to and including private meetings with the county assessor and property assesment dispute hearings in front of the dispute board. Taxation is theft.
 
Provience said:
Illegal or not, that is how it works.
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Paying cash has zero to do with what is recorded.

Paying cash on the side to reduce the recorded price is illegal in some states…. And may also end up with the seller having to pay income taxes on that $$, depending on how much “cash” is actually “cash.”
 
rockota said:
Paying cash has zero to do with what is recorded.

Paying cash on the side to reduce the recorded price is illegal in some states…. And may also end up with the seller having to pay income taxes on that $$, depending on how much “cash” is actually “cash.”
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Cash/gold bars/cocane/bitcoin/helicopters....remember who the OP is, there's a million ways to pay
 
Provience said:
Cash/gold bars/cocane/bitcoin/helicopters....remember who the OP is, there's a million ways to pay
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100% Agree. Just need to be sure the seller is willing to sign his/her name on those real estate docs appropriately.
 
No a trust, with a trustee or two and beneficiary or two.

At that point you are selling / buying the trust.


Gbkeith said:
Like a car you’re making payments on?
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CarterKraft said:
But that is the definition of market price right? The dumbass set the market...

(I'm on your team here)
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I'm not sure what we're arguing about here. :laughing::flipoff2:

The comment I was replying to said assessed value is the value 20 years ago, not today. Which isn't true, at least in most places.
 
That said, I'm not selling for anything other than a cleared deposit. Don't give a fuck about your future taxes and need to clear my basis :laughing:
 
Serious answer: I am not giving financial advise to you or any other members here.


bgaidan said:
Serious question: Do you think anyone here would take any kind of financial advice from you?
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This is how shit gets fucked up, people pay more than shit is worth, a viscous cycle.
This is a buddies house

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PAE said:
No a trust, with a trustee or two and beneficiary or two.

At that point you are selling / buying the trust.
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I'm going through setting up a trust now and I was asking my estate attorney about trusts and was referencing some of the things that have been brought up on here over the years. Like using trusts to avoid taxes, putting property in trusts to protect it from lawsuits and not being seized by the .gov and her answer was: people fundamentally don't understand what a trust is and a trust is not a way to protect yourself in those situations. There are other ways to do it, but typically you have an asset portfolio at a level that you are employing your own legal team to come up with strategies to protect you and those assets in a case by case basis. In short her answer was trusts won't protect you from getting your shit seized in those situations or help you avoid taxes.
 
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