Do I lose my Homestead tax savings if I move to another property?
Before, when you moved to another property you lost all the tax savings
you had accumulated in your home throughout the years, and had to start new at
the new residence which was a burden to some who couldn’t afford the new
property tax payments.
Downsizing, upsizing, job
transfers, and divorce are some of the main reasons why people decide to move
to a new property, and since 2008 thanks to the Portability
provision in your Homestead exemption you
can now transfer those savings to your new residence.
As mentioned yesterday in my article, due to the cap 3% annual
increase in your property values when you claim homestead, the longer you live
there, the larger the gap between the value assigned to your property by the
County for tax purposes, and the true market value of your home. In increasing
markets like the one in Florida, this could mean over $100,000 over time, which
translates in Thousands on tax savings every year.
Thanks to the Portability
provision, you can now take that savings (up to $500,000) and roll it into your
new home.
Can I transfer the savings
into my new home even though I’m downsizing? Can I transfer my savings
when I move due to a divorce, and can the savings be split between the 2 of
us; or used completely by only one of us, if the other accepts to assign it?
If I own the home with other family members can we all split the savings and take it to our separate new homes?
Can I transfer my savings to a new home in a different County within
Florida? Yes, yes and yes!
Be aware all residents
must first move out of the current home before applying for the transfer. Once you establish in your new home and
apply for homestead in it, you may then file for the transfer of Homestead
Assessment Difference (AKA Portability).
For more information on the appropriate forms, filing deadlines,
and frequently asked questions, visit: http://www.miamidade.gov/pa/exemptions_portability.asp
María T. Villalobos
Real Estate Agent– Public Notary
USA. 786-285-5855
Caracas. 0212-210-5398
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