The Ultimate Homestead Tax Exemption Quiz

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Staff

4 Min Quiz

What is a homestead?

For legal purposes, a homestead refers to your primary residence and has nothing to do with pioneer life on the prairie.

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Exemptions from property tax are called:

Homeowners can claim an exemption from property tax known as a homestead exemption. It can also protect a homeowner's primary residence in the case of financial hardship.

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The homestead exemption may save a primary residence from _____sale.

In the case of the death of a spouse, the homestead exemption can protect your primary residence from a forced sale to pay off creditors.

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The homestead exemption may protect a primary residence in the case of:

The homestead exemption protects a debtor's residence if the debtor actually files for bankruptcy. This protection is not automatic; you must file an application for homestead exemption with the appropriate government office.

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Homestead exemption rates _____from one state to another.

Homestead exemption amounts vary from state to state. If you live in New Jersey, for instance, you are not entitled to a homestead exemption.

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_____ has no maximum dollar amount on its homestead exemption.

In Florida, homestead exemption is limited according to property size and not value. Your property can be no more than half an acre in a city or 160 acres elsewhere to qualify for exemption.

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Which United States law was passed to prevent abuse of the homestead exemption system?

In 2005, in an effort to prevent people from retaining expensive homes while declaring bankruptcy, the Bankruptcy Prevention and Consumer Protection Act was passed.

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The Bankruptcy Prevention and Consumer Protection Act of 2005 set a______limit on state homestead exemptions.

If you bought your home within 40 months of filing for bankruptcy, the Bankruptcy Prevention and Consumer Protection Act of 2005 sets a $125,000 limit on your state homestead exemption.

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Does the federal government set a bankruptcy exemption amount on your home?

The federal government does set a bankruptcy exemption amount, presently at $21, 625. Depending in which state you live, you may be able to opt for the federal instead of the state bankruptcy exemption.

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To get the most from the homestead law in your state, you may want to consult:

Since homestead laws are complicated and tend to vary from state to state, it is advisable to consult a tax attorney well versed about the homestead exemption statutes in your home state.

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About This Quiz

Homestead laws can protect you from being forced to sell your beloved family home in times of financial hardship. Take our quiz and learn how a homestead exemption can protect your loved ones in times of trouble.

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