Tax Planning

What is the Homestead Exemption in Florida?

If you are looking for reasons to buy real estate in Florida, then you can add tax benefits as one of those reasons. Specifically, Florida’s homestead exemption is a very effective way to reduce your tax burden in the State of Florida.  

In this article, we are going to talk about the homestead exemption for Palm Beach County residents in Florida, so you too can minimize your tax burden as much as possible. If, after reading this article, you want to learn more about the homestead exemption in Palm Beach, FL, then we welcome you to give us a call at Doane & Doane, PA. 

At Doane & Doane, PA, we are passionate about giving our clients the personalized legal counsel they need to appropriately take care of many major life and death decisions, such as tax planning. So, to answer your questions about the homestead exemption in Palm Beach after you read this article, we welcome you to consider contacting us at Doane & Doane, PA for tax planning advice and services. You can contact us today at 561-656-0200 or fill out our online contact form.

The Homestead Exemption – What is it?

The Florida homestead exemption is a tax law that allows you to reduce the taxable value of your home by as much as $50,000. In short, the law allows you to take the assessed value of your home and use certain tax exemptions.  Here is how it works:

1. For the first $50,000 of value in your home, you can take up to a $25,000 exemption. This initial exemption applies to all property taxes, including those for your local school district.
2. For the value of your home between $25,000 and $50,000, you pay full taxes.
3. For any assessed value between $50,000 and $75,000, you are eligible for up to another $25,000 exemption, yet this one does not apply to local school district taxes.
4. Finally, for any assessed value above $75,000, you pay full taxes.  

Make Sense?  Here Are Some Examples to Help You

Let’s assume that your own property assessed at $47,000. Going through the steps discussed above, the first $25,000 in assessed value would be exempt from all property taxes. The remaining $22,000, then, is taxed at normal rates.

Now, let’s assume that you own property assessed at $100,000. As above, the first $25,000 in assessed value is exempt from all property taxes, including school taxes. Then, the next $25,000 would be taxed at normal rates. But, you still have $50,000 more in assessed value in this property. So, going to Step #3 above, you would be able to claim an exemption for all but school taxes for the next $25,000.  Then, the remaining $25,000 would be taxed at normal rates.  

Who Is Eligible for the Homestead Exemption?

There are three requirements to be able to take advantage of the homestead exemption. They are:

1. The property that is the subject of the exemption must be the permanent residence of you or someone you can claim as a dependent on your taxes.
2. You (or your dependent) must have lived at the property on January 1 of the tax year in which you are claiming the exemption.
3. You cannot have rented the property for more than 30 days in a calendar year.  

How Can You Get the Homestead Exemption?

The exemption is not automatic. You need to fill out an application form and demonstrate proof of residence by March 1 of the year for which you seek to claim the exemption.  

You can fill out the application form either online, in person, or by mail. Regardless of how you complete the application, however, you need to prove your residence in Florida at the relevant property address. You can do that with the following documents:

1. Florida Driver’s License or Florida ID (if you do not drive)
2. Florida car registration
3. Florida Voter’s ID
4. Immigration documents if not a U.S. citizen.

As you can see, the homestead exemption for Palm Beach residents is a great tax benefit. Yet, it takes a lot of work to enjoy the benefit. That is why you would be wise to get the help of an experienced tax planning attorney in Palm Beach.

Look to Doane & Doane for Help Enjoy the Homestead Exemption in Palm Beach, or throughout Florida.

Founded in 2003 by husband and wife legal team, Randell C. Doane and Rebecca G. Doane, Doane & Doane provides legal and financial services to families, individuals, and businesses throughout Southeast Florida.

There are few guarantees in life. But as long as you are alive, you have to pay taxes in one form or the other. As a resident of Palm Beach, Florida, you need not worry and lose sleep over managing your tax obligations. Doane & Doane, with its experienced tax planning lawyers, can assist you and your company in managing and handling your tax obligations with astute planning.

Our managing partners combine certified public accountancy experience with cutting edge tax planning techniques to help businesses and individuals with all aspects of tax planning.

Doane & Doane, P.A. provides tax planning services to a substantial client base of businesses and individuals. Whether your business is a sole proprietorship, small business, limited liability company, or a large corporation, you need to understand how to plan for all kinds of tax situations.

The experienced attorneys at Doane & Doane, P.A. provide businesses, families, and individuals with a variety of tax planning services, including:

1. Income tax planning
2. Estate tax planning
3. Tax return preparation
4. IRS controversies

Tax and estate planning is about much more than just paying taxes and giving away property.  It is an act of love and kindness, with the ultimate goal of providing for the future financial security of your loved one. At Doane & Doane, our Wills and Trusts Attorneys West Palm Beach help people plan for retirement, make provisions for loved ones, figure out future child support, and minimize tax liability. Experienced wills and trusts attorneys know which tools to use to get the best results for their clients. Our lawyers can help you determine which tools are best suited to your specific circumstances.

Call us at Doane & Doane, P.A. to help you if you are faced with a probate matter, or if you would like estate planning services in Florida.  You can reach us at 561-656-0200. Call us today.