Don’t Forget to Homestead
I was out with another Minnesota First Time Home Buyer this weekend, and the topic of “homesteading” came up on the tax information for a property. Homesteading has a couple different meanings in real estate.
For investors, homesteading usually refers to a person who lives in the property while renovating or rehabbing it. This can seem like a good idea to save money and pay the mortgage while you work and stay in the home, but it can be tougher than you think.
For most other first time home buyers, homesteading is a classification for property tax purposes. If your home has the homestead designation, that means you or a close relative live in the house you own, and thus taxes are lower than a non-owner occupied property.
To file for homestead you must present your county’s office with a Certificate of Real Estate Value, and the Deed. You should have received both of these at your closing.
The deadline to file for next year homesteading is December 15. For example, if you bought the home in 2008 and wanted to get a tax break on your 2009 property taxes, the deadline would be Dec. 15, 2008. If you miss the deadline, you will have to pay the higher taxes, but you can always file again the next year. Once you file for a property, you don’t have to re-file every year. Homesteading stays with the property until it is sold or you move out.
Check with your county to make sure you meet the requirements to homestead. And don’t miss the deadline!
If you have questions on Homesteading please contact me via email or phone and I will help to answer your questions: no cots, no obligation.
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