It’s tax time and because I am NOT with the government I AM here to help you. The first quarter of any new year brings a lot of tax implications or should I say tax action on your part.
1) If you bought a home in 2018 you will want to file homestead to lower your property tax from a nonexempt status.
2) If you bought or sold a home in 2018 you will need to use your closing disclosure to determine what can be deducted from your taxes.
I will address each of these action items below:
As with any tax information, consult your tax professional for complete information
1) Filing Homestead Exemption: You must have owned your home on January 1, 2019 to file. You have until April 30, 2018 to complete the form and you (or your mortgage company) will not see the result of this action until your bill comes out in November 2019. This is a free service. Do not pay anyone or a company to do this for you. If you bought a home with an existing Homestead on the home, you will have kept the existing homestead through 2018 but now you must apply in your name. Your driver’s license must read the new address. You can do all of this, driver’s license and file homestead on line. Go to the websites listed below, type in your address to confirm change of ownership, as well as, fill out the form needed to file homestead exemption or print document and mail.
Texas Department of Public Safety http://www.dps.texas.gov/DriverLicense/
Collin County 972.578.5200 www.collincad.org
Dallas County 214.631.0910 www.dallascad.org
Denton County 940.349.3800 www.dentoncad.com
Ellis County 972.937.3552 www.elliscad.org
Rockwall County 972.771.2034 www.txcountydata.com
Tarrant County 817.284.0024 www.tad.org
2) Using information from the closing disclosure on you Federal Income Tax Return: Some of your closing costs might be deductible on your federal income tax report. Consult your tax consultant on the items that can be used.
If you sold a home in 2018, you may remember giving the buyer your prorated share of your tax liability for 2018. The closing disclosure is the only place you will find this information to use as a deduction on your taxes.
Under current law, there is no capital gains tax liability from sales profit of your primary home with the following limits…Married couples can exclude up to $500,000 of gain when they sell their home and $250,000 for individual homeowners. The home must have been your principal residence for at least 2 of the last 5 years.