![\"A](\"https:\/\/archive-lynchlaw.pfgsandbox.com\/wp-content\/uploads\/2016\/09\/Florida-Residence-1024x576.jpg\")
<\/h2>\n<\/h2>\nDo you own a home in Florida? Have you ever considered becoming a Florida resident?\u00a0Florida has some attractive tax benefits that may help make that decision a little easier. Unlike other states, Florida has no income tax, no state estate tax, no inheritance tax, and no gift tax. Florida also provides its residents very generous homestead protections, exemptions, and Save our Homes (SOH), but in order to take advantage of these benefits, you must be a Florida resident, which means a change of domicile to Florida.<\/p>\n
It is important to understand that a person\u2019s \u201cdomicile\u201d may be very different from his \u201cresidence.\u201d While you may have a number of different residences, you can have only one domicile. Domicile is defined as actual residence within a particular state, combined with the \u201cintention\u201d of making that state one\u2019s permanent home. So, in order to establish a new domicile, you must first abandon your old domicile.<\/p>\n
Since domicile is a question of intent<\/em>, courts often look to a person\u2019s overall manner of living to determine whether there has been a change of domicile. Specific actions which would show your intent to become domiciled in Florida may include, but are not limited to, the following:<\/p>\n If you intend to make Florida your domicile, it is important to take advantage of Florida\u2019s favorable homestead laws. In order for your Florida home to be considered your \u201chomestead\u201d, you must \u201cown\u201d the home, and you must reside in the home as your permanent residence. If your home qualifies as your \u201chomestead,\u201d three different types of benefits and limitations will apply, relating to: (1) real estate taxes; (2) creditor protection; and (3) limits on the ability to transfer your homestead.<\/p>\n Let\u2019s take a closer look at the real estate tax benefits. It is important to apply for the homestead exemption and Save Our Homes (SOH)<\/a> on your Florida homestead. The homestead exemption allows for reduction of up to $50,000 from the assessed value of your residence.<\/p>\n Once you have obtained the homestead exemption, SOH places a limitation of three percent (3%) on annual assessment increases on your homestead property. In other words, the SOH caps the increase in the assessed value of the homestead property for purposes of calculating the real estate tax that is owed in any given year. The assessed value will not increase more than three percent (3%) or the percentage change in Consumer Price Index (CPI): whichever is less. The average increase over the years has been around two percent (2%) per year. So, while market values on property may skyrocket, the SOH assessed value on your homestead for real estate tax purposes is limited by the cap.<\/p>\n To qualify for the homestead exemption and SOH on your Florida residence, you must be a permanent Florida resident as of January 1st<\/sup> of the year you wish to apply. You will be required to show proof of residency. The property appraiser\u2019s office generally requires the following items:<\/p>\n If you own a residence in another state, you may also wish to file with the Clerk of Courts a Declaration of Domicile proving that you are a Florida resident and that your Florida residence is your primary home. You are allowed to apply for a homestead in one state. Therefore, your spouse cannot be homesteaded in another state while you are homesteaded in Florida. Your spouse must decide to give up the competing homestead exemption if any.<\/p>\n New applications for the homestead exemption for the current year must be made prior to March 1st<\/sup> at the Property Appraiser\u2019s office in the county where your residence is located. Some counties require you to file your application in person. Other counties allow you to mail in your application or apply online. You must check your county\u2019s property appraiser\u2019s office as to its requirements.<\/p>\n Don\u2019t pack your bags and move to Florida just yet. There are many complexities involved in changing your domicile and understanding the benefits and limitations of Florida\u2019s unique homestead laws. Prior to your change of domicile, it is essential for you to discuss the proper timing of the change with your tax advisor and your attorney, who is licensed and has practiced in Florida.<\/p>\n In Relocating to Florida – Part 2,<\/a> we discuss tax considerations that apply when you own property in Florida and another state.<\/p>\n If you would like more information on the tax benefits of relocating to Florida or have questions about change of domicile to Florida, contact Dan Lynch<\/a> at (724) 776-8000 or dlynch@archive-lynchlaw.pfgsandbox.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" Benefits of Becoming a Florida Resident Do you own a home in Florida? Have you ever considered becoming a Florida resident?\u00a0Florida has some attractive tax benefits that may help make that decision a little easier. Unlike other states, Florida has … \n
What is the homestead exemption and Save Our Homes?<\/h2>\n
Who is eligible for the homestead exemption and SOH?<\/h2>\n
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When and where can I apply for homestead exemption and SOH?<\/h2>\n
Pittsburgh Real Estate Attorneys<\/h4>\n