Property Tax Deductions – Snooze You Loose

Well now someone is telling you…

Now that most of us have filed our 2018 tax return, lets revisit the word “deduction”.  Why you ask? …because you or someone you care about might qualify for a valuable property tax deduction.

In preparation for every listing appointment we always check a property tax record.  When we come across a home without the homestead exemption, we question the owner.  Sometimes we will discover the homeowner was entitled to the exemption, but they never just filed for it.  This occurs more often than you might think.  There are also other exemptions that you or some you know might qualify for.

Remember, property tax exemptions are not retroactive… so if you snooze you lose.

The Florida constitution allows homeowners to exempt a portion of the assessed value on your primary residence, thereby lowering your property taxes.  Property tax exemptions all start with first proving you are “bonafide” resident of Florida, and you must apply for every exemption that is available.

You can apply for Florida’s standard $25,000. homestead exemption ($50,000. for a married couple), after you purchase the home.  The home must be your primary residence.  I would suggest waiting to file the exemption until January of the following year.  For example, if you purchase a home in 2019, file your homestead exemption in January of 2020.  You will not loose anything by waiting, and you might avoid risking an early reassessment.  If you have questions, please contact me.

Most people know about the homestead exemption, but some homeowners qualify for other exemptions

Disability exemptions, exemptions for the blind, low income seniors, exemptions for widow/widower, disabled veterans, those deployed for military service, the surviving spouses of a military veteran or first responder. There’s even a “Granny Flat” exemption (if living quarters are provided for parents or grandparents).

You should also know…

The homestead exemption needs to be re-filed if you deeded your property into a trust, life estate, or made any changes to how the property is titled . This includes changes to the property ownership due to death or divorce.

Have you sold a primary residence and purchased another home?

If so, you may qualify for additional tax savings with the “Save Our Homes Portability” benefit.  This allows homeowners to transfer the dollar value difference between the assessed value and the market value of the home you sold to a new primary residence.  To receive the benefit, you must apply for BOTH the homestead exemption and the portability transfer; for more information about this or any other exemption, contact the County Tax Appraiser’s office.

Bottom line, don’t miss out on property tax deductions .

Written by:

Tom Carroll, P.A., REALTOR, CRS, ABR, Assist 2 Sell Co-Owner

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