GnarHoff Posted June 7, 2011 Report Share Posted June 7, 2011 How long must a person have owned their home for before they qualify for the WI Homestead? I am just wondering because my mom has a client that purchased a home in December of 08'. Thanks. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted June 8, 2011 Report Share Posted June 8, 2011 How long must a person have owned their home for before they qualify for the WI Homestead? I am just wondering because my mom has a client that purchased a home in December of 08'. Thanks. The key is not in how long you own the home. It is in the relativity of your income to the amount of property tax you pay. In fact, you don't even have to own the home. Many people get the homestead credit for paying rent. Go to Wisconsin.gov and find and read the rules for Schedule H, Wisconsin Homestead credit. You will find them quite involved and particular. It is pretty much strictly a relief for very low-income people. Quote Link to comment Share on other sites More sharing options...
GnarHoff Posted June 8, 2011 Author Report Share Posted June 8, 2011 The key is not in how long you own the home. It is in the relativity of your income to the amount of property tax you pay. In fact, you don't even have to own the home. Many people get the homestead credit for paying rent. Go to Wisconsin.gov and find and read the rules for Schedule H, Wisconsin Homestead credit. You will find them quite involved and particular. It is pretty much strictly a relief for very low-income people. So, it doesn't matter that she only owned the home for only one month before the new tax season? I was just unsure because she does qualify for the credit based on the information she has provided. It was just the length of time she had to own the home for that was in question. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted June 8, 2011 Report Share Posted June 8, 2011 So, it doesn't matter that she only owned the home for only one month before the new tax season? I was just unsure because she does qualify for the credit based on the information she has provided. It was just the length of time she had to own the home for that was in question. BUT...if she only owned the home for one month of the year you are wishing to receive the credit; she couldn't have paid much property tax for one year. She cannot take the credit for tax that someone else paid. If she rented prior to the purchase; she can combine the rent and the property tax on the Sch H. Quote Link to comment Share on other sites More sharing options...
jess Posted June 9, 2011 Report Share Posted June 9, 2011 Actually for the Homestead Credit the current year property tax bill need not be paid, but the bill must be prorated for the time actually owned and occupied. The taxpayer must also be a legal resident of Wisconsin for the entire year. As pointed out above if the taxpayer rented for part of the year they can calculate the homestead credit based on the amount of rent and the prorated property taxes. Or if sold and bought a new home you would prorate the property taxes for each home. The total of rent and/or property taxes cannot be for more than 12 months. The income maximum for 2010 is $24,680 and includes income from taxable and nontaxable sources such as social security, child support, etc.... Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.