Florida’s tax break for homes worth more than $10 million is making it an expensive endeavor for people trying to buy.
And, the state is not alone in this situation.
According to a report from the Tax Policy Center, a nonpartisan think tank, the top 1 percent of Florida homeowners paid nearly $10 billion in property taxes in 2017.
That’s almost three times the state average.
And it’s not just the wealthy.
In a survey by The Associated Press, more than half of Florida’s wealthiest residents paid property taxes.
The highest paid earners, who made over $100 million, paid $1.5 billion.
The lowest paid earners–just under $10,000–paid $2.2 billion.
It’s a trend that’s becoming increasingly common across the country as the nation’s rich and poor face the same tax burden.
That’s especially true in Florida, which has the highest effective property tax rate in the country.
If you’ve ever watched a real estate listing or seen someone trying to sell, you’ve likely seen the word “estate tax” popping up on screen.
Real estate prices are so high that many of us don’t even know we’re paying property taxes when we apply for a mortgage or apply for credit.
So how do we know what the real estate market is worth?
The Tax Policy Blog analyzed real estate data to find out.
Here are five things to know about the Florida estate tax.1.
It’s a complex and complicated systemThere are several taxes in Florida that apply to the value of your home, depending on what you purchase.
In most cases, those taxes are calculated at the county level, meaning that property owners in counties with more than 1 million people will be subject to the same rates as those in more populous counties.
That means if you’re buying a house in Palm Beach County, you’ll pay a different rate than someone in Sarasota County.2.
The property tax exemption applies to all propertiesYou may have heard of the Florida Estate Tax exemption.
It allows homeowners to avoid paying property tax if their home is worth more $10M than $5M.
While it’s easy to think of this as a way to save on taxes, it has more to do with the real-estate market than anything else.
This is not a tax that’s just reserved for the wealthy, either.
When buying a home in Florida you’re only allowed to claim the tax exemption if you can prove that your home is valued at less than $1 million.
So, if you own a home worth $2 million and you’re thinking of buying it for $2,000, you might be able to claim an estate tax deduction if you have less than one million dollars of property.3.
Property tax exemptions are not unlimitedWhen buying homes, you can claim a property tax credit for up to $5,000 of value in a single year, up to a maximum of $30,000 for a single taxpayer.
The total value is limited to $50,000.4.
There are no minimum or maximum amountsTo qualify for the property tax exemptions, you must have a property valued at $10MM or less.
There’s no cap on the value you can get.
You can claim up to three property tax credits, but only one can be claimed for a property worth $10 or more.
You don’t have to claim a credit if your property is valued more than three times as much as $10.5.
There is a $2 tax credit that is available for a purchase of a $100,000 or less home.6.
If you’re not sure whether you qualify, you’re better off just buying a property outrightThere are a few ways to get your property assessed, but it can be hard to determine if you qualify for a tax credit.
In order to qualify, your property must have an assessed value of $10-50M.
If your assessed value is less than that, you cannot claim the property exemption.7.
The tax code isn’t as simple as you thinkIt’s not as simple to figure out what the value on your property actually is, or to determine how much you can actually claim on the tax return.
The Tax Code is very complicated.
The state has a system for calculating your taxable income based on your income and deductions.
If that income falls outside of those parameters, it can make it hard to figure your tax bill.
This isn’t a huge issue for Florida homeowners, but when the IRS does get to the bottom of this issue, it could make it much more expensive.8.
If someone’s not eligible to claim any tax creditsThe Florida estate Tax exemption is only available to first-time, married couples.
There isn’t an exception for widows or surviving spouses.9.
The value of the home isn’t the same in each county