Are you enjoying the sun-soaked beaches and tax-free living in Florida? Beyond the obvious perks, there's a little-known treasure that could be saving you a fortune – Homestead Exemptions and the Save Our Home Assessment Limitation. Let's dive into how these two powerful tools can put more money back into your pocket.
Picture this: You've just closed on your dream Florida home, basking in the glory of zero state income taxes and the promise of everlasting sunshine. As a seasoned realtor, let me share a secret – applying for homestead after closing is like finding gold in your backyard.
Once the ink dries on your closing documents, the real estate deed is transferred to you. Pro tip: If you receive a sketchy letter demanding payment for your deed, toss it out! Your transfer deed is free, and if it's taking longer than 12 weeks to arrive, give your real estate agent or the title company a shout.
Now, here's the golden nugget: Apply for homestead once you have your deed in hand. Remember, you must be a permanent resident, and the deadline to apply is March 1st. The first-time homebuyer discount, reaching up to $50,000, is a sweet bonus. Check out [link] for the nitty-gritty details.
But wait, there's more! Save Our Home Assessment Limitation (SOH) kicks in after you've secured homestead exemption. Your property's assessed value won't spike more than 3% annually or the change in the consumer price index – whichever is less. This means your tax burden remains steady, shielding you from unexpected financial storms.
Thinking of trading your current abode for a new one within Florida? The good news is, you might be able to transfer your homestead assessment difference. This valuable piece of information could make a significant dent in your tax liability, providing additional savings through the SOH.
Example:
Imagine you bought your Florida oasis a decade ago, enjoying a $50,000 homestead discount. Your just value is now $654,500, with an assessed value of $385,174 and a SOH CAP of $269,376. When you decide to downsize, transferring this CAP to your new homestead could be the key to lowering your tax assessment and overall taxes.
Don't let the sun blind you to these incredible benefits – homestead exemptions and the Save Our Home Assessment Limitation are your ticket to substantial savings. If you have questions or need more information, reach out to the Florida Department of Revenue. Secure your financial sunshine today!
