A Home Equity Loan is a type of loan in which the borrower uses the equity of their home as collateral. These loans are typically used to finance major expenses such as home repairs, medical bills, or education fees.
A Homestead Declaration is a legal statement signed by a property owner declaring the property as their principal residence. It can provide benefits such as tax advantages and protection against certain claims.
A homestead exemption is a legal provision that helps reduce the amount of property taxes on domiciles owned by qualifying individuals. These exemptions can vary by jurisdiction and may provide additional benefits for certain groups such as seniors or disabled individuals.
A household comprises one or more persons inhabiting a housing unit as their principal residence, distinct from group quarters residents, such as dormitories or institutional settings.
A primary residence, often referred to as a principal residence, is the main home where an individual resides most of the time. This contrasts with a second home or vacation home.
In real estate, a principal residence is the main home where a person lives most of the time. Principal residences qualify for specific tax benefits, such as rollover tax treatments.
Rollover Home Sale refers to the tax-deferred sale of a principal residence before May 6, 1997, which allowed homeowners to defer gains if they purchased a replacement home. It is governed by Section 121 for principal residence sales after this date.
Section 121 of the Internal Revenue Code pertains to the exclusion of gain from the sale of a principal residence. It provides guidelines on the criteria and limitations for income exclusion, ensuring taxpayers benefit from tax relief on qualifying property sales.
