Yes, Homestead is very portable now, and it does not matter whether you are downsizing or upsizing. Let's say the house you are living in now has a fair market value of $400,000 and you accumulated $200,000 in Save our Homes benefits. That would leave an assessed value of $200,000. Now assume that your new house is smaller and has a fair market value of $200,000. You can then apply 50% of your accrued Save our Homes benefit and that would leave an assessed value of your new home of $100,000 (amount you would be taxed on).
Let's say you are buying a larger home with fair market value of $600,000. You can carry over the entire $200,000 benefit which would make your new, larger home have an assessed value of $400,000. Either way, you will save a substantial amount in taxes.
Please let me know if you would like to know more about this or anything else Real Estate related.
Go to http://www.miami-dade.gov for more info!
Here is something I quoted back at the beginning of the year. It might be still very a propos.
In case you donâ€™t know, Florida voters just adopted a property tax reform measure which may mean translate into substantial savings if you purchased a home last year.
The amendment calls for an additional $25,000 homestead exemption applied to the assessed home value above $50,000, and is effective for the first time in 2008. Homesteaded owners who plan on continuing that exemption on the property for 2008 do not need to do anything. The exemption will appear on the TRIM notice (Notice of Proposed Property Taxes) mailed next August.
But if you did all of the following:
â€¢ Sold or vacate your homestead property on or after Jan. 1, 2007?
â€¢ Were you living in a new residence on Jan. 1, 2008?
â€¢ Will be filing a homestead exemption for a new residence in Florida?
then visit http://www.sarasotaproperty.net (for Sarasota residents), or http://www.manateepao.com (for Manatee residents) and download the homestead exemption and portability application.
If you moved to another county in Florida, please visit the property appraiserâ€™s website for that county by clicking http://dor.myflorida.com/dor/property/appraisers.html.
The amended property tax code creates â€œportabilityâ€ of accumulated Save Our Homes (SOH) benefits for homeowners who move from one homestead property to another. This law is retroactive to Jan. 1, 2007.
Homeowners may transfer their SOH benefits to a new homestead in Florida within two years of leaving their former homesteads. This means if you sold your home in 2007, you can transfer your SOH benefit to a new homestead if you establish the homestead by Jan. 1, 2009.
For more information, visit the Florida Department of Revenueâ€™s special web page by clicking http://dor.myflorida.com/dor/property/sb4d.html.
You'll find links in that article that take you to tax calculators that should make it easier to comprehend.