Tax Information

What's Cover by the Tax Credits:

In 2009 and 2010, tax credits of 30 % of the cost-up to $1,500- are available for the following energy-efficient improvements to exsiting homes only:

A.  Windows and Doors
B.  Insulation
C.  Roofs(metal and asphalt)
D.  Heating, ventilating and air-conditioning.
E.  Water Heaters (non solar)
F.  Biomass Stoves

Through 2016, tax credits are available of 30% of the cost-with no upper limit-for the following energy-efficient improvements:

A.  Geothermal heat pumps.
B.  Solar Panels.
C.  Solar water heaters
D.  Small wind energy systems
F.   Fuel Cells

Find out more on the Web at www.energystar.gov/taxcredits.
Be sure to check the guidelines before choosing products because many brands of windows- don't qualify under the government's new, more stringent standards.  Local power companies also offer incentives for energy-efficient renovation.  Progess Engery, for one, offers a $400 rebate to homeowners whose projects are Energy Star-certified.

For more information you can go to this complete article at www.floridahomebuyer.com  September/October issue 2009.

 Home Buyers Tax Credit

November 12  2009:  Senate has past to extend the Homebuyer Tax Credit. 

A:  First time Buyer Amount of Credit $8,000 Married or $4,000 married filing separate.

B:  May not have had an interest in a principal residence for 3 years prior to purchase.

C:  Termination of Credit; Puchases after April 30, 2010.

D:  So long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1 2010 to close.

E:  Income Limits;  Increased income limits are effective as of date of enactmen of bill.  New Limits are $125,000 Single; $225,000 married.  Additional $20,000 phase out on income. 

F:  Limitation on cost of purchased home is $800,000 Starting 11/07/09

G:  Purshaser must attach docmentation of purchase to tax return.

Taxes to Purchase or Sell a Home

Seller Cost

Documentary Stamp:  Documentary stamp taxes are collected on the deed and the note.  The seller normally pays for stamps on the deed and buyer pays for stamps on the note.  The deed stamps are based on the sale price, and are $.70 per $100 or fraction thereof. 

 For Example:  if a property sells for $260,001 the documentary stamp taxes would be calculed as follows:

$260,001 divided by 100= 2600 hundreds plus a fraction, rounded to 2,601.  Then 2,601x$.70= $1820.70. 

Buyers Cost

Note Stamps: are based on the mortgage amount, and are $.35 per $100 or fraction thereof.  (That means that the mortgage amount must be rerounded to the next highest $100 before the calculation is made.) 

For Example:  if the amount of a new mortgage note is $208,535, the documentary stamp tax would be calculated as follows:  $208,535 divided by 100= 2085 plus a fraction rounded to $2086.  $2086 x $.35 = $730.10.  

Intangible Taxes:  are based on mortgage amounts for new loans only, and are .002 of the loan amount.  the loan amount is not rounded.  For example if a property sells for $260,000 with a new mortgage for $208,535 the intangible taxes would be calculated as followes $208,535 x .002= $417.07

Homestead Act

The state constitution of Florida allows up to $50,000(additional $25,000 does not apply to school taxes) to be deducted from the assessed value of a primary residence.  For the property owners who are Florida residents and have qualified for homestead exemption to the property is subject to a limitation in assissment increases, commonly know as Amendment 10.  This important benefit limits the inrease in the assessed value to no more than 3% or the CPI, whichever is less. When the property is sold the homestead exemption is removed. 

Requirements

1.  The owner must have legal or beneficial title to the property recorded in the County by Janurary 1 year of application   HOMESTEAD EXEMPTION APPLICATION

2.  The application must b submitted on or before MARCH 1 unless it falls on a weekend o legal holiday, then it would be extend to the next business day.

3.  The owner must establish in the county as his/her legal domicle and reside on the subject property, be a US citizen or permanent Resident.

Once the homestead exemption is esablished it is automatically renewed each year, until there is a change of ownership. 

For more infomation on the Homestead Act and other exemptions go to http://www.hcpafl.org/downloads/homestead_exemptions.aspx

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