There are many reasons why Florida is a popular place to live—the great weather, the beautiful tourist spots, the senior citizen community. However, there’s one advantage that trumps them all, the tax benefits.
Here are some of the biggest tax benefits that lead to people purchasing Florida homes:
1. The Homestead Exemption
Homestead refers to a property that its owner currently occupies. There are certain tax exemptions given to people on their principal residences.
In Florida, the homestead exemption can mean a reduction of $50,000 in the taxable value of a home. So if you qualify, you’ll be saving significantly on real estate taxes.
There are additional benefits for veterans, spouses of deceased veterans, differently-abled people, and those who are over 65 years of age. Further details on that can be found here.
2. Deductible Real Estate Property Taxes
The property taxes in Florida are deductible up to $10,000. If a married couple is filing separately, then the deduction can go up to $5000 each.
These deductions are available for primary homes, apartments in a housing cooperative, vacation homes, and Florida land. The property taxes must be deducted in the same year that they’re paid.
3. Interest on Mortgage
The interest that you pay on your mortgage payment is deductible. If the house was purchased before 15th December 2017, then interest on the first $1 million is deductible, and if it was purchased after that date, then interest is deductible up to $750,000 in debt.
To be eligible for this, the property must either be your primary residence or your second home. In recent years though, the rules have changed a little. The loan you’ve taken out should be used to either buy your home, build it, or improve it in a significant way.
4. Medical Home Improvements
This is one of the things that makes Florida homes so attractive for seniors. Costs that are more than 7.5% of a homeowner’s adjusted gross income can be deducted. In addition to that, any improvements that do not add to the home’s value can also be deducted.
The maintenance costs of those improvements are also deductible. If the improvements add to the value of your home, then the difference between the cost of the improvement and the increase in the home’s value will be deducted.
With over 25 years served as Florida realtors, we have the knowledge and expertise to guide you through your home purchase and help you save on as many taxes as possible. Don’t just take our word for it; read what some of our customers have to say about our quality of service.
Take a look at all the real estate we have available.