The December 2017 revisions to the federal tax bill caps “SALT” (State and Local Tax deductions) at $10,000. Prior to this, these deductions were unlimited. This includes not just income and sales taxes, but also real estate taxes, excise taxes etc. Since Florida has no state income tax, a move to Florida is even more appealing to those wanting to minimize their tax liability and honestly who doesn’t? Those living in states with an income tax like New Jersey, New York, California and Massachusetts will quickly exceed the new federal itemized deduction SALT cap, without even getting to real estate and other local taxes that one paid. The net result is that one ends up paying a federal tax bill on income used to pay local and state taxes and thus increasing the effective tax rate.
ANYONE WHO ITEMIZES THEIR DEDUCTIONS FOR 2018 SHOULD SERIOUSLY CONSIDER MAKING FLORIDA THEIR RESIDENCE ASAP.
To take advantage of the tax benefits, individuals need to buy a property in Florida, which we here at R&R Realty have been helping Buyers do for 15+ years. You will also need to:
- CLICK HERE TO CONTACT US AND FIND A HOME.
- Obtain a Florida driver’s license.
- Change your car registrations and insurance locations.
- Change your bank and credit card mailing addresses.
- File for a Florida Homestead.
- Resign your current homestead if you have one. This is an important and often overlooked step. It is also one of the few pieces of information which tax collectors readily share with one another.
Florida has long been considered a tax-friendly state with one of the lowest effective tax rates in the country and now with the cap on SALT deductions it’s more appealing than ever. To most, it really is a ‘no-brainer’ to move to beautiful, sunny Florida and not only escape the long, cold winters, but also save more hard-earned money avoiding high taxes.
Making Florida your official home is a smart move.