Homestead

Question 1

What is homestead?

Answer 1

A primary residence, also known as a legal residence, is protected from a forced sale by creditors. There can only be one homestead at a time and it must be owned by a natural person. It also includes $1,000 in personal property.

Question 2

How to get homestead protection

Answer 2

To get homestead protection, the protection must be filed before any creditor claim.

Question 3

Acreage limit

Answer 3

Homestead protection only covers 1/2 acre of contiguous land inside a municipality, or 160 acres of contiguous land outside a municipality.

Question 4

Creditors that can reach the homestead

Answer 4

Super-creditors can reach the homestead. Those creditors are the mortgage holder, the government of unpaid property taxes, and mechanics liens (work done on home).

Question 5

Abandonment

Answer 5

Homestead protection is abandoned if a person leaves the property and expresses an intent not to return.

Question 6

Devise

Answer 6

The homestead cannot be devised if there is a spouse and a minor child. The surviving spouse gets a life estate and the minor child gets a remainder.

Question 7

Ad Valorem Taxes

Answer 7

Ad Valorem Taxes are property taxes and taxes on tangible personal property.

Property taxes are only paid to the local, county government, not the state. Homesteads receive two $25,000 exemptions off the property value.

Property taxes are calculated by the uniform millage rate.

When a Florida resident sells one homestead and moves to another homestead, homestead must be refiled for the new house. The original residence’s property tax exemption is portable to the new residence.

Question 8

Income Tax

Answer 8

There is no state income tax in Florida.

Question 9

Government owned property

Answer 9

Government owned property is exempt from all property taxes. But, if the property is used for a private profit-making purposes, that portion of the land will be subject to property tax.