Portability
Portability in Florida’s real estate offers several benefits that make it a favorable option for homeowners. Here are some reasons to love portability:
– **Tax Savings**: Portability allows homeowners to transfer up to $500,000 of accumulated Save Our Homes assessment difference from a prior Florida homesteaded property to a new homesteaded property, reducing the assessed value of the new property and saving money.
– **Flexibility**: Homeowners can transfer their Save Our Homes (SOH) benefit from their old homestead to a new one, lowering the tax assessment and, consequently, the taxes for the new homestead.
– **Extended Eligibility**: The approval of Florida Amendment 5 extended the time frame for homeowners to transfer their SOH assessment limitation. Starting January 1, 2021, homeowners will have 3 years to transfer their SOH assessment limitation.
– **Qualification**: To qualify for portability, a homeowner must establish a new residence on or before January 1 of the third tax roll year after leaving or selling their prior residence.
– **Ease of Application**: Homeowners can apply for portability when they apply for a homestead exemption on their new property.
Portability in Florida’s real estate offers tax savings, flexibility, extended eligibility, and an easy application process, making it an attractive option for homeowners.
The maximum amount of portability in Florida’s real estate is $500,000. This allows homeowners to transfer up to $500,000 of accumulated Save Our Homes assessment difference from a prior homesteaded property to a new homesteaded property, reducing the assessed value of the new property and resulting in tax savings
To calculate the amount of portability you can transfer in Florida’s real estate, you can use the following general formula:
$$
\text{Portability Benefit} = \text{Market/Just Value of Previous Property} – \text{Assessed Value of Previous Property}
$$
The maximum amount that can be transferred is $500,000. If the new property’s market value is less than the previous property’s market value, the same percentage of the difference can be transferred. The portability benefit is then determined by subtracting the assessed value of the former home from its market value. The portability amount is calculated based on the Save Our Homes assessment difference, which is the difference between the market value and the assessed value of the property. Homeowners have up to three years to claim their portability benefit
Portability in Florida’s real estate, also known as the “Transfer of Homestead Assessment Difference,” allows homeowners to transfer the dollar benefit of the Homestead CAP from one homestead to another. The Homestead CAP is the difference between market value and assessed value, often known as the Save Our Homes Benefit. On the other hand, the homestead exemption is a tax benefit for Florida residents who make a property their permanent residence. It can reduce the taxable value of the property by up to $50,000. Portability, on the other hand, allows homeowners to transfer up to $500,000 of accumulated Save Our Homes assessment difference from a prior homesteaded property to a new homesteaded property, reducing the assessed value of the new property and resulting in tax savings.
The maximum amount of homestead exemption in Florida’s real estate is up to $50,000. This exemption applies to all property taxes, including school district taxes. The first $25,000 of the property’s value is exempt from all property tax, and the additional exemption of up to $25,000 applies to the assessed value between $50,000 and $75,000, but only to non-school taxes.
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