Diana Flood, Home Buyer in Clearwater, FL

What are the advantages of a "homestead" property?

Asked by Diana Flood, Clearwater, FL Wed May 29, 2013

This question was asked from http://www.trulia.com/property/3084546691-3640-Kirkpatrick-C…

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Hi Diana.....great question! Homestead Exemption is one of the many "PERKS" of owning your own home. When you purchase a home in which you will live....your "homestead"....the State of Florida gives you a property tax advantage by deducting up to $50,000 of value from your assessed value of your home. Example: You purchase a home for $150,000.....your taxable value of your home is set by the tax assessor.....it often is about 92% of your purchase price. sooooo....you NOW have a taxable value of $138,000 ( 92% of $150,000)......then....IF you are using this home as your PRIMARY residence (NOT a property that you rent to others OR a second home)...you are entitled to subtract up to $50,000 of value from the $138,000.....SO...you then have an ADJUSTED value of $88,000. If the tax rate in the area in which your home is located is $18 per $1,000 of value....you will owe property taxes of $1,584.00 per year......you will have saved about $900.00 for the year... remember...IF the property purchase is a second home or a rental home...you will not enjoy the benefit of the Homestead Exemption.
Another benefit of home ownership is the interest deduction on your income tax! And...do NOT forget that it is USUALLY possible to see appreciation over the years you own your home. You also receive the intangible asset of pride of ownership!
Contact me, donna, or my son, Hickory for experienced and caring assistance in any of your real estate questions...or needs. WE KNOW THE MARKET....so contact us...and...START PACKING!
Hickory Delegal....h.delegal@comcast.net (904) 463-5664
Donna Delegal ( "The Real Estate Lady") startpacking@comcast.net (904) 732-PACK / 732-7225
0 votes Thank Flag Link Wed May 29, 2013
For the owner of the property up to $50,000 tax break on local taxes. If you are buying there is no advantage until you register the property as your primary resident and submit the forms for homestead exemption.
0 votes Thank Flag Link Wed May 29, 2013
Hi Diana,

The main advantage is lower property taxes.
0 votes Thank Flag Link Wed May 29, 2013
Contact me to broker your condo deal.
0 votes Thank Flag Link Wed May 29, 2013
Reverse mortgages for seniors and lower taxes for homestead.
0 votes Thank Flag Link Wed May 29, 2013
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