Success Story: What is a homeowners’ $7000 tax exemption, and do I have that?
The Homeowners’ exemption is a property tax reduction given to you by the entity which calculates or assesses your tax amount. Here it’s LA county tax assessor who does this.
As a general rule, property owners are assessed a tax of 1.25% of the purchase price of their property (unless pre prop 13 in CA). You can learn more in detail about your home loans in Torrance California here.
If you bought your home for $500,000, then your tax amount would be $6250. If you live in the property as your primary residence and you file the appropriate form (or the closing agent did), then you would deduct $7000 from the assessed value.
That means $500,000 – $7000 = $493000 x 1.25% = a new tax bill of $6162.50. Not huge savings, but every little bit helps! If you want to find out if you are getting this benefit, check your tax bill (listed as Homeowner’s Exemption $7000).
If your property is a rental property, unfortunately, you don’t get this deduction. However, if you previously owned the property as a rental and moved in, you are eligible as long as you do not have another property getting the benefit.
If you want to know if you can apply for this deduction or for any information on mortgage loans California, visit here.
Cheers!
About Athena Paquette
If you are unsure of your eligibility, you can contact Athena Paquette Mortgage Consulting for more detailed information. As a mortgage broker, Athena has consulted many clients over the years with mortgage and home advice.