Florida Homestead Tips and Traps - Part 1
Posted on Dec 23, 2019 7:44am PST
Florida has by far the most desirable legal protections and real property
tax benefits on its residents’ primary homes, however, remember
that despite such protections, each county has strict rules and keeps
a close eye on any potential abuse of such legal protections. There are
certain nuances for claiming and/or keeping a homestead exemption on a
primary residence. The following are a few tips and traps when it comes
to homesteading a primary residence in Florida.
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Timing for Homesteading the Property: Did you know that if you were not the owner of a particular parcel of real
property as of the first day of the year you are claiming homestead, then
your homestead application for that year will be denied? This is true
even though the application is not actually due until March 1. This fact
may cause purchasers of homes they intend to homestead be more wary that
the closing date of any such prospective purchase does not extend beyond
December 31st.
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Forwarding Mail: The homestead laws state that an individual may claim residence in Florida
by living in Florida for six (6) months and one (1) day or more out of
each calendar year. That means each resident of Florida can spend time
with family in northern states and reside in Florida for the winter months
(as long as the six (6) months and one (1) day rule is satisfied). A common
“red flag” that leads the Property Appraiser to investigate
how much time a Florida resident is
actuallyspending in Florida vs. another state is any forwarding, by the homestead
applicant, of their mail. In some cases, the Property Appraiser can catch
wind of such forwarding and inquire on why forwarding began. At that point,
the resident may become at risk of losing their homestead exemption during
said investigation.
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Married Couples Must Apply Together for Homestead: One common scenario is where a married couple own property in Florida as
well as another state (New York for example). In such case, the first
spouse desires to become a Florida resident and claim homestead on the
Florida real property and the other spouse prefers to remain a resident
New York for work and/or other related reasons. Such spouse continues
to claim Homestead on the New York property, in good faith, truly believing
that each spouse is separate from the other. Such married couple will
be shocked to learn that they cannot actually maintain two (2) domiciles
or two (2) homesteads because a married couple is considered as one (1)
unit in the eyes of the law. Therefore, the married couple must choose
one (1) state as their “primary home” and give up any homestead
and/or other benefits that they may be receiving at the time from any
other state. This is true even if the Exemption is initially accepted
because the Property Appraiser may find this information out at a later
time and revoke the Exemption. In such case, the Property Appraiser may
also choose to impose penalties for such actions as further discussed below.
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Improper Filing of Homestead Can Lead to Penalties: In most cases, failing to disclose certain facts related to the homesteading
of real property may seem like an innocent act. To the contrary, the Property
Appraiser’s office, in general, has been extremely strict in applying
penalties to any individuals who have claimed homestead improperly, including
the payment of any back real estate taxes (that were initially discounted
pursuant to the homestead), loss of the “Save Our Homes” cap,
interest and/or additional monetary penalties. Such penalties are applied
on a case-by-case basis and certain counties are stricter than others.
The best way to ensure that you do not become subject to any such penalties
is to follow the homestead exemption rules as strictly as possible.
For more Florida Homestead tips and traps stay tuned for next week’s
blog. Contact The Presser Law Firm, P.A. for a complimentary consultation
to learn more about Asset Protection, Business Law, Estate Planning, and/or
any other legal needs that you may have.
The Presser Law Firm, P.A.
6199 N. Federal Highway, Boca Raton FL 33487
(561) 953-1050 or e-mail Info@AssetProtectionAttorneys.com
www.AssetProtectionAttorneys.com
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