AuthorJordana Sarrell, Esq., LL.M. Archives
March 2018
HOMESTEAD APPS DUE 2/1/2021
Did You Know? When you make property your permanent residence, you may be eligible to receive an exemption that keeps you from paying tax on a certain portion of your property’s assessed value. If your home is worth at least $75,000, the exemption would decrease the property’s taxable value by $50,000! The homestead exemption qualifies the home for the Save Our Homes assessment limitation. This “cap” limits any increase to the assessed value of a homestead exempt property to a maximum of 3% or the annual change in the Consumer Price Index, whichever is less, per year. If eligible, this assessment limitation is now transferable to a new homestead in Florida if you move. When to Apply? The deadline for filing is March 1. In order toqualify for the homestead exemption, you must be living in the property as your primary residence as of January 1 of 2021. Below is a list of what is generally required, however, check with the property appraiser’s office before the file: • Proof of Residence • Property Tax Bill – if you have received one • Florida Driver’s License or Florida Photo Identification Card • Copy of Florida Vehicle Registration • Social Security Number Not a U.S. Citizen? Bring your Resident Alien Card (Green Card) and your Social Security Number. Do not forget to gather all the appropriate documents and information you need to file whether you do it in person at the tax collector's office or online - for Palm Beach County you can click this link: https://secure.co.palm-beach.fl.us/papaefile/web/heapplication/login.aspx *Tip Always check with the county property appraiser’s office to confirm the necessary documentation required to file. Don't forget that if you sold your old homestead and purchased a new one you may be eligible for Portability!Portability allows Florida residents with a previous Homestead Exemption to transfer part of their tax savings to their new residential property in Florida so long as the sale and purchase fall within a two-year window. The “Save Our Homes” (SOH) amendment to the Florida Constitution, codified at Sec. 193.155, F.S. includes a provision added in 2008 allowing homestead owners to transfer the accumulated difference between assessed value and the just or market value to a new homestead. If just value of the new homestead is more than the previous home's just value, entire benefit can be transferred, subject to a $500,000 limit. If just value of the new homestead is less than the previous home's just value, a percentage of the accumulated SOH benefit can be transferred (up to $500,000 limit) |
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The new tax bill affects homeowners in several ways. Here are some of the highlights of how the tax bill can affect a homeowners. Feel free to contact the attorneys at SSB Law to answer any more questions you may have.
* Eliminates home equity deduction; interest home equity lines of credit will no longer be deductible whereas interest was deductible on equity lines up to $100,000. * Reduces mortgage interest deduction limit to $750,000. While the deduction limit pertaining to mortgage interest drops to $750,000 of debt on your primary residence, it remains $1 million for homes purchased before Dec. 15 of this 2017. * Retains current law treatment of capital gains from home sales. * Doubles the standard deduction. The new law increases the standard deduction to $12,000 for single The new law increases the standard deduction to $12,000 for single filers and $24,000 for joint filers. filers and $24,000 for joint filers. * Limits deduction for state and local income tax, real property tax, and sales tax (in the aggregate) to a maximum amount of $10,000. This only affects Floridians for our property taxes since we do not have state income tax. * Does not reinstate the deduction for mortgage insurance premiums
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