What are the tax incentives for buying a home?

When you buy a home in Virginia, one of the biggest tax incentives available is the Homestead Exemption. This encourages homeownership by offering tax relief on the value of your home. Virginia’s Homestead Exemption exempts a portion of the assessed value of your primary residence from local real estate taxes. The exemption is limited to the first $20,000 of assessed value, so it only applies to homes with an assessed value of $20,000 or more. The second major tax incentive for buying a home in Virginia is the Homeowner’s Property Tax Relief Grant (HPTGR). This grant helps eligible homeowners in Virginia to offset property taxes. A homeowner can receive up to $750 per year in owner-occupied primary residences. The amount of the grant depends on the homeowner’s income and the county they live in. The state of Virginia also offers a Property Tax Deferral Program. This program allows eligible homeowners to defer their taxes until they sell their homes. The deferred tax is then paid with the proceeds of the sale. To qualify, the homeowner must be 65 years of age or older and have lived in the home for at least one year. This program provides relief for seniors who are struggling to pay their property taxes. These are just a few of the tax incentives available for homeowners in Virginia. Homeowners should research the local laws and consult with an experienced tax professional to determine which incentives best suit their needs.

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What are the tax incentives for buying a home?

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