taxes

3 Benefits to Being a Florida Resident

July 25, 2017 By Chris

Considering a move to Florida? We have three great benefits of being a Florida resident.

Your Money

Florida law is protective of its residents’ money and assets. It is one of the seven states in the nation that do not have an income tax. There are also no state inheritance tax, no state estate tax, and no gift tax. An appeal for many business persons and celebrities is asset protection provided by Florida law. Asset protection extends well past a person’s primacy residence. The “Save Our Homestead” program protects homeowners from experience an annual increase in property assessments of more than three percent.

Entertainment

Tourism is a huge portion of Florida’s economy with Disney, Universal, and Busch Gardens properties being some of the biggest draws. Theme parks aren’t just for tourists though and being a Florida resident gets you some awesome perks including resident pricing, ample time to visit the parks, and the benefits of season passes for multiple visits. There’s also the benefits of visiting the parks during slow times like weekdays and the off season.

In addition to the theme parks, Florida’s entertainment also includes outdoor activities such as golf, water sports, tennis, and activities within state and national parks. Florida is also hosts numerous ports for cruises to numerous destinations.

3 Benefits to Being a Florida Resident

The Weather

They don’t call us the “Sunshine State” for no reason. Florida has long been a destination for those chasing seventy degrees. While it may not be seventy degrees year-round, Florida does boast a warm and sunny climate. The winters are mild with the occasional cold snap. The spring and summers are hot and humid, with coastal areas like Tampa Bay being more temperate than inland areas.

Ready to Become a Florida Resident?

It’s relatively easy to become a Florida resident. Once you’ve settled on a home, you need to file a Declaration of Domicile, this is especially important if you spend part of the year in another location. Obtaining a Florida driver’s license and registering your vehicles with the Florida Department of Motor Vehicles are the next steps in establishing your residency. Finally, update your voter registration and all your tax documentation to reflect your new Florida location.

Choosing a Home After Retirement

July 18, 2017 By Chris

Retirement doesn’t mean that it’s the twilight of a person’s life anymore. Many people are living well into their eighties and nineties while maintaining active lifestyles. According to a survey by Merrill Lynch and Age Wave, two-thirds of retirees desired to move after retirement with the reasons ranging from “being closer to family”and “reducing living expenses”. If you’re ready to move after you’ve retired, what should you look for in a new home?

Location, location, location.

Florida is often associated with snowbirds and retirees because of it’s moderate weather year round and it is a large attraction to many retirees, especially those who have spent the majority of their lives in areas that deal with snow and cold temperatures for a good portion of the year. Besides favorable weather, many retirees want to be closer to their families and friends or a place that will allow them time to enjoy a hobby or passion that they didn’t necessarily have time for while working.

Consider the future.

With the average full retirement age ranging between sixty-two and sixty-five and an increase in life expectancy, retirees have two or three decades to take advantage of that time frame. This next stage in their lives should be a large consideration when finding a new home. Down-sizing is a common practice, with retirees wanting to avoid higher housing costs and home maintenance that takes excessive time and effort. On the flip side, other retirees are seeking out larger homes to accommodate visiting family and friends. Retirees should also consider the logistics of owning a multi-story home with stairs possibly becoming problematic as they get older.

The cost.

The majority of retirees live off a fixed income. When choosing where to live, retirees should not only think about the cost of a home but also the cost of living expenses, healthcare, and taxes in a particular area. Pensions and social security are not taxable in Florida making it a financial ideal for retirees. The idea of home ownership is also something that retirees may want to consider retiring from. Depending on the area, renting may be less expensive than owing a home but retirees don’t have to sacrifice a home for the option to rent; many investors are looking for stable tenants ready to make their property a home.

Whatever your goals for retirement are, don’t feel like you need to settle. The perfect place to meet all of your wants and needs is out there!

This post was originally published July 2015. It has since been updated to reflect current information and edited for clarity.

Buying a Historic Home? Consider These 4 Things

June 13, 2017 By Chris

Many outsiders call to mind images of multi-story condos and mid-century ranch style homes when they think of Florida architecture. And while these styles are prevalent in the Florida real estate market, there are quite a number of historic homes within our communities. These homes are pieces of living history and are bought and sold every year. If you’re planning on buying a historic home or one unexpectedly swept you off your feet, consider a few points before you sign the agreement of sale and put down a deposit.

What makes a home historic?

Age alone doesn’t determine if a home has “historic” status. A home is only considered officially historic if it is part of the National Registry of Historic Places or part of a similar local registry or homes that are located within a designated historic district. These homes will have historic easements attached to their titles that places certain conditions and obligations to all current and future owners.

How much does a historic home cost and how can I finance one?

The value of a historic home is just like any other property, it is dependent on a myriad of factors including the size, condition, and location. A historic home is excellent condition in a desirable area could end up costing more than a more recently constructed home. Financing is again determinant upon a number of conditions. If the home is move-in ready, securing financing may be as simple as financing any other home. If the home needs extensive repairs however, you may not be able to secure a conventional, FHA, or VA loan. There are other options available though include a 203k mortgage or a Fannie Mae HomeStyle rehab mortgage.

Ready to Buy a Historic Home? Consider There 4 Things

Historic gem in St. Pete we helped sell in 2015.

Is it difficult owning a historic home?

Owning a historic home does come with unique requirements based on the historic easement. Things like paint colors and landscaping may be dictated within the easement restrictions. When repairs need to be made you may be required to repair with materials from the home’s original era, which can be pricey if the item is large or a rare find. Utility bills may be higher depending on the type of fuel needed to heat the home, the quality and level of insulation, and if the home can be efficiently cooled.

What are the benefits of buying a historic home?

There are some surprising benefits to owning an official historic home. Many states and local municipalities offer tax incentives either in the form of lower property taxes and/or low-interest loans or grants to aid repairs that protect the historic aspects of the home. Buyers may also find that historic homes offer unique architecture and amenities newer homes no longer offer. If you purchase a home on the National Registry of Historic Places you may be able to write off the cost of repairs on your tax return. You should contact the National Park Service and your accountant to see if your home qualifies.

If you’ve fallen in love with a home that’s older than most don’t let the “historic” designation scare you off. With the right amount of due diligence you could own a piece of history that is also the home of your dreams.

Claim Your Home Mortage Interest Deduction

December 15, 2015 By Chris Leave a Comment

Since 1913, American homeowners have been able to claim a mortgage interest deduction from their federal income taxes. There are limitations however; interest paid on first & second mortgages, lines of credit secured by real estate, and home equity lines of credit valued up to $1,000,000.00 or $500,000.00, if married and filing separately, is able to be deducted. After those limits are reached the remaining interest is not deductible.

Claiming Your Mortgage Interest Deduction

What do I need to do it claim the deduction?

First, fill out IRS Schedule A to determine whether your itemized deductions, including your mortgage interest, exceed your standard deduction. If they do, you’ll need to file the 1040 long form. Second, you’ll need Form 1098, your Mortgage Interest Statement, from your mortgage lender. This details the amount of interest and mortgage-related expenses you paid during the tax year you are filing for. Third, if you bought the property in the year for which you are filing, you’ll need the HUD-1 Settlement Statement form from your lender. This itemizes the fees you paid when you closed your loan.

If you prepare your own taxes, check out IRS Publication 936, the Home Mortgage Interest Deduction, and the instructions for filing Schedule A. If you use an accountant, he or she may simply need Form 1098 and the HUD form, but double check whether any additional documents are necessary.

Who qualifies for the deduction?

In order to qualify you must be legally liable for the loan. In other words, you’re not able to deduct mortgage payments you’ve made for someone else unless you’re legally liable to make the payments. Also, a qualified home, i.e. your primary or second home, must secure the mortgage. And, be sure to double-check that the mortgage interest deduction you claim on Schedule A and the amount on Form 1098 are the same.

Additionally, keep your 1098 Form and any worksheets you use to figure the amount of your deduction along with a copy of your return for as long as is legally necessary. If you need additional information, check the IRS for their guidelines.

Editor’s note: This post was originally published in January 2011. It has been updated with the latest information and edited for cohesiveness.

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