What is the Homestead Exemption in Nevada?
You may have heard about something called a homestead exemption - and if you live in Nevada (or if you’re thinking about moving here), you might be wondering what the homestead exemption in Nevada is. Homestead exemptions vary by state, but in Nevada, there are specific statutes that need to be followed. Here’s a quick overview of what homestead exemptions are, and what it looks like in Nevada.
How Does a Homestead Exemption Work?
A homestead exemption is a legal provision that helps protect the value in your home. In general, it also reduces the amount of property taxes that you are required to pay on your home (but again, the rules vary by state, so be sure to check into your state’s exemption for more information).
Homestead Exemption in Nevada
In Nevada, the homestead exemption protects your home’s equity (up to $550,000) from creditor claims such as bankruptcy, unpaid medical bills, business or personal loans, and more. However, it does not protect the equity in your home from events such as a forced sale of your home from general creditors (like those listed above) if your home’s equity exceeds $550,000.
With a homestead exemption in Nevada, you aren’t protected from debts secured by things such as a mortgage, tax payments, IRS or mechanic’s liens, and more. The homestead exemption must also be filed before filing for bankruptcy.
How to Calculate Your Home’s Equity
The homestead exemption in Nevada protects your home’s equity up to $550,000. This means that if the value of your home is $700,000, for example, and your mortgage is $400,000, the equity in your home is $300,000.
Quick disclaimer: I’m not a tax or legal professional, so all of this is based on my personal experience. If you have specific questions or want more information, I always recommend consulting with a professional for help!
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