Hillsborough Homestead Exemption and IRS Debt
Your Tampa home has significant protection from IRS collection under Florida's unlimited homestead exemption.
Florida's homestead exemption under Article X, Section 4 of the Florida Constitution protects your primary residence from forced sale with no cap on value. Your $800,000 home in Palma Ceia gets the same protection as a $200,000 home in Brandon.
The IRS can file a lien that attaches to homestead property. But forcing a sale requires a federal court order under IRC section 7403. Courts rarely grant these for primary residences, and the IRS almost never pursues it for Florida homesteads.
Strategic Implications
Homestead equity is treated differently in OIC calculations, potentially reducing your offer amount. In bankruptcy, the homestead exemption protects the home while qualifying tax debt is discharged. If you own a home in Hillsborough County and owe the IRS, let's talk about how to use this.
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