Coconut Grove, Coral Gables & South Miami Real Estate
There are several benefits for buying a home before the end of the year but the tax advantages are a great incentive.
First of all, federal income tax credits. Closing on your new home by Dec. 31, 2012 means you can deduct mortgage interest, property taxes and points from your loans on your 2012 income tax return. These deductions can be significant, especially in the early years of your loan when you are paying off so much interest.
Reason number two, Florida property taxes. Here in Florida we have what is known as the Homestead Exemption. State law allows Florida homeowners to claim up to a $50,000 exemption towards the assessed value on their primary residence. Additionally, homes that qualify for the Homestead Exemption also receive a benefit known as Amendment 10 or “Save Our Homes.” Amendment 10 limits increases in the annual assessment of a home to a maximum of 3% regardless of increases in market value.
Even better, if you currently have a homesteaded property, when you sell, you can file for “Portability of Homestead Assessment” (Amendment 10) which limits increases in the annual assessment of the new home purchase regardless of increases in market value. I have had clients save thousands of dollars by utilizing this amendment.
If you have any questions regarding any of the above tax benefits, please give me a call and I will be happy to refer you to an expert in the field.
It’s not easy to find an agent with my combination of skills, strengths and experience. If you are thinking of buying or selling a home, call me at 305-987-2644 to schedule a private consultation. If you know someone who could benefit from my expertise, please feel free to pass my contact information along