| Partial Exemption of Homesteads Answers to Practice Problems |
- A. Five acres of land with three houses and a mobile home. Maximum possible homestead exemption = 4 x $25,000 = $100,000.
- B. A 40 unit apartment complex with an owner living in one of the units (classified residential) as his/her personal residence. Maximum possible homestead exemption = 40 x $25,000 = $1,000,000.
- C. To be eligible for the homestead exemption, an owner of the property must reside on said property.True.
- D. Legal title and equitable title are not the same thing, but owners who hold either are entitled to all the same benefits of the homestead exemption.True.
- E. Husband and wife generally have tenancy by the entireties.
- F. Tenancy in common splits a property between joint owners. False.
- G. The shared exemption percentage (SE%) of one owner as a joint tenant with the right of survivorship = 100%, even if only one of the owners resides on the property.
- H. As tenants-in-common: Don owns 30%, Mike owns 25%, Jim owns 25%, and Joe owns 20%. There are three homes on the property and Mike, Jim and Joe each reside in respective homes. What is the total SE% for the eligible owners? If the tenancy is in common, the Shared Exemption % is proportionate to the number of owners (e.g. 2 owners = 50% each; 3 owners = 33.3% each; etc.) or the percentage ownership interest reflected in the deed. So the SE% for Don is 0%, Mike is 25%, Jim is 25% and Joe is 20%.
- I. What is the amount of eligible assessed value (EAV) for homestead exemption on an owner-occupied residence on a commercial property with a total value of $65,000 (commercial land = $15,000, commercial improvements = $25,000, residential land = $5,000 and residential improvements = $20,000)? Residential land of $5,000 + residential improvements of $20,000 = $25,000.
- J. The amount of EAV for homestead exemption on a residential property where:
- Residence #1 = $20,000 (not owner-occupied)
Residence #2 = $30,000 (owner-occupied)
Land value = $10,000
Residence #2 (owner-occuppied) at $30,000 + land value at $10,000 = $40,000. - K. EAV = $40,000 and SE% = 50%, so PHE = $40,000 x .5 = $20,000.
- L. EAV = $60,000 and SE% = 100% so PHE = $60,000 x 1.0 = $60,000.
- M. No exemption shall exceed the value of real estate assessable to the owner. So, if Step 6 = $20,000 and Step 2 = $25,000, the exemption = $20,000.
- N. If Step 6 = $60,000 and Step 2 = $25,000, the exemption = $25,000.
| Back | Next | ||||||
|---|---|---|---|---|---|---|---|
| Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Worksheet |
| Index | Answers to practice problems | ||||||