Homestead Exemption Laws

 Over 1,000 people move to Florida every day according to dmv.org.   Not only are families relocating from other states but they are also moving from other countries.  Is this because of the beautiful sand beaches, warm sunny weather, or miles of green golf courses?  It may just be because of the generous tax laws offered to Florida residents.

The law states that Florida residents are eligible for a 25,000 exemption on the assessed value of their home.  Those with an assessed value of more than 50,000 are eligible for an additional 25,000 exemption, depending on the value of their property. The exemption can only be applied to non-school taxes, and the property must be worth at minimum 75,000 to be eligible for the entire exemption amount.

In addition to the homestead exemption we have the Save our homes amendment which protects homeowners by limiting the tax assessment to a maximum of 3% each year.

You may also qualify for one or all of these exemptions listed below.

• Widow/Widower's Exemption $500.00
• Disability Exemption $500.00
• Veterans Disability Exemption $5,000.00

If you are a foreign buyer there is something to be aware of and that is the FIRPTA withholding Rule.  This stands for investment in real property tax act of 1980. FIRPTA authorized the IRS to withhold income tax on nonresident aliens and foreign corporations with sales of US real property. When a person or corporation purchases a US real property from nonresident aliens or foreign corporations, they are required to withhold 10% of the amount. This tax is intended to ensure that the US is able to tax the gains from the sale of property

Whether you are buying a new home or vacation home, moving from another state or another country or just planning to purchase an investment property,your taxes will always be based on the assessed market value of your property.  You will never be penalized and made to pay higher taxes simply because you are native to another place. The Homestead Exemption and Save our homes amendment are offered to full time Florida residents.

 There are exceptions to all tax information listed above we recommend visiting these sites for more detailed information.

http://leepa.org/Exemption/GeneralExemptionInfo.aspx

www.irs.gov

Once you have made the decision to relocate to this beautiful city of Cape Coral, contact our Florida Future Realty Team we are here to assist you.

Tax Credit guidelines for new and repeat home buyers

Buying a new home in Cape Coral is both an exciting and stressful experience.  The federal government has made an offer we just can't refuse.  Homes are now going to be much more affordable than ever, with a fantastic tax incentive for buyers. This is an amazing opportunity to finally own your own home or relocate to the digs of your dreams.  Read below to see which program you qualify for.

$8,000 First-time Home Buyer Tax Credit

The $8,000 tax credit is for first-time home buyers only. For this tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence three-years prior to the purchase.

The tax credit does not have to be repaid unless the home is sold or is not used as the buyer's principal residence within three years after the initial purchase.

The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.

 The tax credit applies only to homes priced at $800,000 or less.

The tax credit now applies to sales occurring on or after January 1, 2009 and on or beforeApril 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.

For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer

The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer's principal residence within three years after the initial purchase.

The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.

The tax credit applies only to homes priced at $800,000 or less.

The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.

is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.

Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

We at Florida Future Realty want to make your Cape Coral home buying experience as positive and stress free as possible.   Please call one of our qualified agents to assist you with finding the perfect home, or browse our site to begin a search of your own.

Yours in Success,

Florida Future Realty Team

(239)542-8521

www.floridafutureagents.com

www.florida-future-realty.com

The Lee County Florida housing market is on a positive trend. Whether you are a first time home buyer or you are looking to purchase a second home, the largest increase in sales is mainly from buyers taking advantage of the lower pricing and abundance of homes in Lee County to choose from.

With the average Lee County home sitting on the market for upwards of 120 days, buyers have the upper hand in negotiating final pricing that is around 90% of the already low asking price. Lee County, with its world-class beaches, including Sanibel and Captiva Island, Bonita and Ft. Myers Beach, its international airport with direct flights to and from Europe, as well as its exceptional university located just south of Ft. Myers makes purchasing a home even more enticing.

We are getting a lot of potential home owners inquiring about the bank owned properties in our area. Accordingly, the bank-owned properties continue to impact our sales and closings.  Since June of last year, 66% of all single family homes sold listed in the MLS were bank-owned; of these 64% were cash deals, according to the REALTOR® Association of Greater Fort Myers and the Beach, Inc.

Home sales continue to rise in our area and in June there were 1,586 homes sold, which is a 121% increase from June 2008. Again, this is an indication that the Lee County housing market is on a positive trend and possibly on a more upward spiral. In addition to the always warm climate and pristine beaches, Lee County offers a relaxing lifestyle which has consistently attracted second homeowners and vacationers, a government which is business friendly, accessible beachfront or canal front properties and median home prices 50% below the national average. For example, the REALTOR® Association of Greater Fort Myers and the Beach, Inc. states that in June the median price for all homes was around $83,000. To date, the median price for "traditional" sales is $175,000. For the available bank-owned homes the median price is $69,000 and $105,000 for short sales.

According to the Lee County Economic Development, Ft. Myers, Cape Coral and surrounding areas have acquired the reputation as being some of the best places to live, vacation or own a second home. With that in mind, the potential buyers we are seeing are "market watching" which means they are seeing the growth in our area and are getting more excited about purchasing a home at an affordable price in an area that is economically stabilizing at a steady pace. Additionally, our office is seeing more and more banks working closely with us to process short sales which coincide with the stabilizing market.

With the steady and consistent economic growth, the affordable and abundant homes available to buyers, the consideration of the banks and lenders; it is only likely that Lee County will stay on the positive trend, steady pace and rising swing we are experiencing now. For more information on bank owned properties, short-sales, foreclosures and traditional home buying please contact one of our team members at 239-542-8521 or search for Cape Coral real estate online now!

Copyright 2009 Florida Future Realty, Inc.