In addition to choosing who will get the job of U.S. President for the next four years, the November 2020 election also includes some items of local interest that pertain to Florida property owners. One of these – Amendment 5 – has to do with the state constitution.
This amendment to the Florida constitution would lengthen the time period – from 2 to 3 years – on when a tax benefit may be transferred to a new home. Based on the “Save Our Homes” benefit, the taxable value of a home could be reduced by $50,000. This, in turn, may save homeowners in Florida approximately $750 per year.
Amendment 5 is stated on the ballot as follows:
“Proposing an amendment to the State Constitution, effective January 1, 2021, to increase from 2 years to 3 years, the period of time during which accrued Save-Our-Homes benefits may be transferred from a prior homestead to a new homestead.”
While this amendment could save property owners tax money, based on their personal residence, what could the passage of Amendment 5 mean for your investment property(ies) in Florida?
Unfortunately, not a lot. “Homesteads” refer to primary residences. So, in order to qualify for the homestead exemption tax break in Florida, you must reside in the home. And, while homestead property can be rented, the exemption is abandoned if the property is rented entirely, or even if it is rented for more than 30 days per calendar year for two consecutive years.
If your investment property(ies) are causing you a headache when it comes to various tax breaks, it could help if you hire a property manager who is also well-versed in the U.S. tax system. Contact CFL Property Management at (407) 429-4834 or visit our website for more information on how we can make your life as an investment property owner much easier.