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.
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