Taxes Affecting Real Estate Flashcards
Ad Valorem
Taxable value of real property, according to the value.
Assessment Limitation (Save Our Homes Benefit)
In 1992 voters approved an amendment to the Florida Constitution known as Amendment 10, or Save Our Homes (SOH). SOH is an assessment limitation, or “cap”, on increases in the assessed value of a homestead residence.
Assessed Value
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
Capital Gains
At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value). Used for income tax computations. Gains are called short or long based upon the length of the holding period after acquisition. Usually taxed at lower rates than ordinary income.
Community Development Districts
An independent special district created pursuant to Florida law to service long-term detailed needs of its community. A CDD constructs, operates, and maintains communitywide services and infrastructure for the benefits of the residents. CDD’s provide an alternate way to fund and construct capital infrastructure to service projected growth.
Debt Service
The amount of money required for the payment of mortgage principal and interest.
Exempt Properties
if a decedent was domiciled in Florida at the time of his or her death, the surviving spouse, or, if there is no surviving spouse, the children of the decedent has the right to a share of the estate of the decedent which is designated exempt property.
Installment Sale
An installment agreement in which the buyer agrees to make a down payment and pay the remainder of the sales price over a term of years.
Immune Properties
Real property owned by a unit of government and not subject to taxation.
Just Value
The fair market value of something.
Like-kind Exchange
A tax-deferred transaction that allows for the disposal of an asset and the acquisition of another similar asset without generating a capital gains tax liability from the sale of the first asset.
Mill
The amount of tax payable per dollar of the assessed value of a property. The mill rate is based on “mills.” It is a figure that represents the amount per $1,000 of the assessed value of the property, which is used to calculate the amount of property tax.
Special Assessment
An assessment made against a property to pay for a public improvement by which the assessed property is supposed to be especially benefited.
Tax Rate
Tax rate for individuals is the average rate at which their earned income, such as wages, and unearned income, such as stock dividends, are taxed.
Taxable Income
Taxable income is the portion of gross income that’s actually subject to taxation.
