"Flipped In Florida" - For Sale Sign On Almost Every Other Home
- Thread starter ByLoSellHi
- Start date
It is such waste..as bad a building on a floodplain. There are just some places where it is stupid to build ...greed overcomes common sense...
selling people property built in stupid places pays better ??
Regarding the Homestead exemption:
Say two buyers (a non resident and resident) purchase at the same time. The assessed value is $500k. The millage is 2% (it actually varies from county to county)
The non-resident who CANNOT take the exemption will pay $10k in taxes on a TAXABLE value of $500k versus $9,500 for the resident who CAN take the $25.000 (current) exemption, making his taxable value $475000. Thus the present years savings would be $500.
The big issue WAS going forward, If the assessed value rose by 20%, next years assessed value would come in at $600k, the non-resident's TAXABLE value would also be $600k, giving him a $12k tax bill. Under Florida law however, the homesteaded property can only be increased at a cap of 3% per year , in this case to $515k. Throw in the $25k exemption and the resident's taxable value is $490k thus giving him a tax bill of only $9800.
Obviously in this runaway market after several years the difference can be substantial. Many a home have a Assessed value of $1mill but were bought for substantially less and with the 3%cap have Taxable values of $100-$300k.
Say two buyers (a non resident and resident) purchase at the same time. The assessed value is $500k. The millage is 2% (it actually varies from county to county)
The non-resident who CANNOT take the exemption will pay $10k in taxes on a TAXABLE value of $500k versus $9,500 for the resident who CAN take the $25.000 (current) exemption, making his taxable value $475000. Thus the present years savings would be $500.
The big issue WAS going forward, If the assessed value rose by 20%, next years assessed value would come in at $600k, the non-resident's TAXABLE value would also be $600k, giving him a $12k tax bill. Under Florida law however, the homesteaded property can only be increased at a cap of 3% per year , in this case to $515k. Throw in the $25k exemption and the resident's taxable value is $490k thus giving him a tax bill of only $9800.
Obviously in this runaway market after several years the difference can be substantial. Many a home have a Assessed value of $1mill but were bought for substantially less and with the 3%cap have Taxable values of $100-$300k.