Hello everyone....this my first post here...

My dad passed away in Dec 2015. He had both a homestead and over 65 Exemption on his home in Houston, TX. The house was sold in Dec 2016.

Based on the exemptions, property taxes around the amount $2000 were due and paid when the house was sold.

We just got a notice from the buyer that Harris county rolled back the exemption for 2016 because my dad passed. This caused an additional tax amount of around $3900. The 2016 Property taxes in Texas are payable without penalty until Jan 31, 2017... As of Oct, there is penalty amount of around $400 due on top of this.

I don't know when the rollback actually occurred as we just got notice from the buyer this week.

My first question is when does the property actually lose the exemption status? Is it when the house is actually sold or was it lost when my dad passed in 2015? No one lived in the house from the time he passed until it was sold.

If the exemption was lost because the house was sold in December, are the exemptions lost for the entire year or just from the point the home was sold (which would just be December)?

I am going to call the tax office on Monday to find out when the rollback occurred. If the buyer just notified us of this this week, I feel that we are not responsible for any penalties from when the rollback occurred through last month and we will discuss that with the buyer. Is that reasonable?

Thanks for any feedback on this...if any other info is needed, please let me know....

My first question is when does the property actually lose the exemption status? Is it when the house is actually sold or was it lost when my dad passed in 2015? No one lived in the house from the time he passed until it was sold.======>> Property that has been designated as a homestead will only lose that character through abandonment, death, or transfer. A temporary absence from the home will not end homestead protection provided the owner does not establish another homestead elsewhere. Evidence establishing the abandonment of a homestead must be undeniably clear that there has been a total abandonment with an intention not to return.

If the exemption was lost because the house was sold in December, are the exemptions lost for the entire year or just from the point the home was sold (which would just be December)?==========>as mentioned above; please contact the TX homecomptroller.

I am going to call the tax office on Monday to find out when the rollback occurred. If the buyer just notified us of this this week, I feel that we are not responsible for any penalties from when the rollback occurred through last month and we will discuss that with the buyer. Is that reasonable?====> as you planned you need to contact an IRS enrolled agent/a CPA doing taxes in your LOCAL AREA for more accurate info in detail.

Harris County did do the rollback after finding out about my dad's passing...

The rollback was done in July of this year but the buyer didn't notify us until this week so they have agreed to pay the penalty amount.