Did you know that if you’re over the age of 65 that you might qualify for Senior Property Tax Homestead Exemption? I didn’t know that was even a possibility until Chip Allen of Crestline Mortgage Bankers put this information on desk. I felt I had a duty to share this information with my friends and clients.
If you are 65 or older, you might qualify for the Senior Property Tax Homestead Exemption. It’s a lot less confusing that it sounds. There are requirements, but in the end it means that you not only get to write off your tax liability of your home, but also previous years of taxes that you’ve already paid! This is a fascinating program that all seniors should look into.
In order to qualify, you first must be 65 years of age or older as of January 1st of the year in which he or she qualifies. Second, the qualifying senior must be the owner of record and have owned the property for at least 10 consecutive years prior to January 1st. Third, the qualifying senior must occupy the property at his or her primary residence, and must have done so for at least ten consecutive years prior to January 1st.
Once you’ve qualified, 50 percent of the first $200,000 of actual value of the applicant’s primary residence is exempted. The state will reimburse the county treasure for the lost revenue. So if your home appraised at $250,000 you’ll have a tax exemption of $100,000, meaning you’ll only be taxed on $150,000. This exemption will only work towards one property and it must be your primary residence.
Although, there are some exceptions to this rule: If ownership has been transferred to or purchased by a trust, corporate partnership or other legal entity solely for estate planning. If the qualifying senior or his or her spouse was or is confined to a health care facility. Lastly, if the prior residence was condemned in an eminent domain proceeding.
The Senior Property Tax Homestead Exemption program will also apply to surviving spouse and disabled veterans. If your spouse, who has passed, would have met the age requirements of January 1st, you can still qualify. The exceptions listed above still apply to the surviving spouse application. Veterans also qualify for the Senior Property Tax Homestead Exemption. The veteran must have 100 percent disability and total disability rating from the Veteran Affairs as a result of a service connected disability. They must have also owned and occupied the property as their primary residence since January 1st.
If you’re a senior that is over the age of 65 at the time of January 1st of the year, have lived in your home for 10 years as your primary residence as the owner of record, then you could qualify for a tax exemption through the Homestead Exemption program. If you’d like more details about the program, to see if you qualify, or the application form please contact us at the Colorado Dream House Team. We’d be happy to help you!