Tired of paying High Income Taxes, State Tax and Death Taxes? Become a Florida Resident!
With some States already
charging high income taxes, State Taxes and/or Death Taxes; and new Tax Laws
that restrict or eliminate some of the deductions high income earners used to
lower their tax obligations, many of them are looking for more Tax Friendly
states to relocate to, and Florida stands out as an attractive option for these
high earners to relocate their businesses and to call home.
Here are just some of the
advantages of becoming a Florida Resident:
1.
No State
Income Tax. The biggest
advantage of being a Florida resident -- from a tax perspective at least -- is that
Florida charges no state income tax whatsoever for individuals. Moving to Florida from a state like New
York can save high income earners thousands or even millions of dollars in
taxes. In addition, the prohibition against collecting an individual income tax
is part of the Florida Constitution. Not only that, but Florida’s
Constitution also prohibits municipalities and counties from levying any
personal income tax.
2.
No Death Taxes. The Florida Constitution prohibits the imposition of a
state death tax, so Moving to Florida from a state like Massachusetts or New
York can save a family thousands if not millions of dollars in state death
taxes. Simply put, this means
you won't have to pay state taxes on any money inherited by you.
3.
No Estate Taxes. An estate tax is like an inheritance tax, except it's paid by the estate
of the deceased -- not the inheritor. This includes your property, investments
and even certain insurance payouts.
4.
Asset Protection and
Tax Benefits for a Primary Residence. Florida’s Homestead Law protects the Florida resident from losing
his or her home to a creditor or any other lien holder, except for mortgages. If you buy a home in Florida and
declare it as your primary "homestead" residence, then, aside from
the asset protection you will also receive tax benefits. First, you will
receive an exemption for the first $50,000 of value for property tax purposes
(except for school district taxes which only receive a $25,000 exemption). Second,
which is of great benefit as your homestead residence increases in value, is
the "Save Our Homes" cap on annual assessments, which means that the
assessed value of your homestead for property tax purposes cannot increase on
annual basis by more than the change in the CPI or 3% if the change in the CPI
is more than 3%.
5.
Tenancies
by the Entirety. Tenancy by the entirety is a form
of joint ownership for married couples only and provides excellent asset
protection benefits. spouses who own property
as tenants by the entirety each own an undivided interest in the property, each
has full rights to occupy and use it, and has a right of survivorship. Tenants
by the entirety also cannot transfer their interest in the property without the
consent of the other spouse.
However, in the case where both spouses
are indebted to a creditor, there is no tenancy by entireties property. This
protection exists only if a creditor has a claim against only one individual of
the married couple.
6.
Miami is called the Manhattan of the South. While
New York remains the undisputed center of the hedge-fund universe, there are approximately
70 hedge and private equity funds now headquartered in Florida, as well as many top
wealth strategists, tax advisors and estate planning attorneys. Brickell is home to the largest number
of international banks in the United States
7.
Affordable Luxury. Miami is still an affordable market
compared to other cities like Manhattan or LA with home prices about 30% less
expensive and plenty of High Rise Waterfront Condominiums or Single-Family Home
options to choose from.
8.
A Gateway to the
Americas. With the growing Latino market, setting up shop in
Miami means capitalizing on a growing Latin American client base. With great
political and financial instability in Central and South American countries,
wealthy nationals look to Miami as a shelter to secure their money and make it
grow.
9.
Warm Weather, Golf
Courses, Art Basel, and great nightlife. Miami’s weather allows its residents to enjoy year-round
activities under the sun including Formula One races which will debut in Miami this
October.
Since tax
and asset protection benefits are only available to Floridians, residency may
be an attractive financial option for you. To obtain the tax advantages it is
not enough to buy a residence, it may also require living in the state at least
six months of the year, and to qualify as a non-resident of the original state.
There are several actions an
applicant can take to help establish intent:
·
Obtain a Florida driver’s license
·
Register your vehicles in Florida
·
Register to vote in Florida
·
File a Florida Declaration of Domicile with
the county Clerk of Courts
·
File for the Homestead Exemption on your
residence
·
Update your estate planning documents to comply with Florida law
·
Focus your major affairs and relationships in
Florida
It is also important to use Florida professionals, such as attorneys,
accountants, and financial advisors, whenever possible since these
professionals understand the ins and outs of Florida laws that will affect your
estate planning, tax planning, and investments.
Ready to move? Get your beach towel and call me to start the search of your
new home!
Maria T Villalobos, CDPE
Realtor Associate - Public
Notary
USA. 786-285-5855
Vzla. 0212-
210-5398
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