Florida Resident might have the best homestead exemption in the country

It’s common for states to raise their tax rates when they’re struggling to collect revenues. Some states with no income taxes have high sales taxes, and some states that have income taxes collect state death taxes as well.

Individuals are often looking for ways to minimize their tax obligations. It can provide a huge incentive for individuals to look for a more desirable and less taxing place to call home when these taxes start adding up—someplace like Florida. The state offers a few other benefits as well. Florida’s homestead exemption is said to be one of the best in the country.

Florida Has No Income Tax

Florida is one of only seven states that doesn’t collect an individual income tax. The other six are Alaska, Nevada, South Dakota, Texas, Washington, and Wyoming. Moving to Florida from a state like New York can save someone in a high-income tax bracket many thousands of dollars each year in taxes.

No incometax in Florida

The prohibition against collecting an individual income tax is part of the Florida Constitution, so the state won’t be imposing a tax anytime soon. A constitutional amendment would be required to change this provision.

There’s No Estate Tax for Florida Resident

Florida used to collect a state estate tax in the form of a “pick-up tax,” but changes in federal law phased this provision out in 2005. Many states took steps to keep the state death tax revenues flowing through a process known as “decoupling,” but not Florida. The state’s constitution also prohibits the imposition of a state estate tax.

Asset Protection Benefits

You shouldn’t have to worry about losing your assets to a creditor or in a lawsuit if you live in Florida. The state offers many asset protection benefits, including:

• Homestead creditor protection
• Tenancies by the entirety for real property, as well as for personal property
• Protection of the cash value of life insurance
• Protection for IRAs and annuities
• Protection of assets held in a properly structured business entity

A creditor can’t claim your home to satisfy a debt unless it’s the mortgage lender who holds the property as collateral for the loan. There’s no constitutional rule against foreclosure.

The state recognizes tenancies by the entirety as well, so this prohibition applies to your spouse’s creditors as well, as long as you’re not also contractually liable for the loan. Your sole creditors can’t touch property or assets that are also owned by your spouse. Tenancies by the entirety are a form of joint ownership limited to married partners.

Property Tax Benefits for Florida Residents

• You’ll also receive two property tax breaks if you buy a home in Florida and declare that the residence is your primary “homestead.”
• First, you’ll receive an exemption for the first $50,000 of your home’s value for property tax purposes, except for school district taxes which only receive a $25,000 exemption.
• There’s also the Florida “Save Our Homes” cap on annual assessments. The cap is set at 3% or the change in the consumer price index (CPI), whichever is less. The CPI is effectively a year-to-year comparison of prices paid by urban Americans for goods and services.

Top Wealth Strategists

Florida is such an attractive state for the wealthy to call home that it’s also home to many top wealth strategists, tax advisors, and estate-planning attorneys. These advisors are creative and proactive in assisting their clients with growing wealth, minimizing taxes, avoiding probate, keeping clients’ final wishes private, and creating an ongoing legacy.

Should You Become a Florida Resident?

Becoming a Florida resident is not difficult or complicated. It’s just a matter of taking some basic steps. The most difficult part would most likely be cutting ties to your former state of residence to convince that state’s revenue department that you’re no longer living there. If you’re not living there, you can’t be taxed there.

This is particularly important for someone who continues to maintain a home or a business in another state while residing in Florida.

Whatsapp us and we help you to become a Florida resident and with your accountability.