Unit 18 - 3 State - Taxes Affecting Real Estate Flashcards
Unit 18
as valorem
real estate property taxes based on county assessors assessment
Unit 18
What is a TRIM notice?
Truth in millage notice
Notice of proposed taxes mailed to property owner
Unit 18
Steps to protest property assessment
- seek adjustment
- if rejected, file an appeal with Value Adjustment Board
- litigation in court, pay taxes but file a suit (Certiorari Proceeding, meaning review by the court)
Unit 18
Immune vs Exempt property taxes
immune = gov't properties exempt = Churches and nonprofit organizations
Unit 18
Save Our Homes (SOH) amendment
caps assessed value increase by lesser of:
- 3% annually
- percentage of change of the Consumer Price Index (CPI)
Unit 18
Green Belt Law
Protects Florida farmers from having taxes increased
Unit 18
special assessment
one time tax to pave streets and sewer lines. NOT an ad valorem tax
Unit 18
delinquent on real estate taxes
appraiser will auction off tax certificate
Unit 18
Tax advantages to owning home
- mortgage interest deductible
- property tax (even on second home) deductible
- IRA withdrawals for first-time homebuyers (no penalty up to $10,000)
- Exclusion of gain from sale of principal residence (up to $250,000 each, $500,000 married)
- interest home equity loans deductible
- mortgage loan origination fees and points are deductible
Unit 18
cash for “reserve replacement” on investment properties
NOT tax deductible, not until you use the money
Unit 18
Straight-line Method
Calculates depreciation
subtract land value
divide depreciable basis by 27.5 for people live there, 39 for no one living there
Unit 18
Installment Sale Method
relieves seller of paying taxes on gain not yet collected
Unit 18
Like-Kind Exchange
swap properties and pay no tax
Unit 18
boot
swap $90,000 home for $100,000 home. If get the $100,000 property, they have to pay taxes on the BOOT
