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Recent Articles : Florida
Homestead Exemptions
HOMESTEAD EXEMPTIONS
The concept of homestead is as old as the State of
Florida. There are only a few states with homestead exemptions.
Florida is considered one of the most generous.
There are 2 types of homestead exemptions available
to property owners in Florida: (a) homestead exemption
for real property tax purposes and (b) homestead exemption
for asset protection purposes. The fact that you have
one type of exemption does not necessarily mean that
you have the other type of exemption as each exemption
has distinct requirements.
Specifically, the homestead exemption for real property
tax purposes provides an owner of property with a $25,000.00
reduction from the assessed value of the property thereby
currently reducing the amount of real property taxes
by approximately $650.00 each year. Since real property
taxes are paid in arrears in Florida (just like interest
on your mortgage), this type of homestead exemption is
only available if the owner is the permanent resident
of residential property as of December 31 of the prior
year and owner makes application for the exemption at
the property appraiser's office on or before March 1
of the following year. If you are widowed or permanently
disabled, you may be entitled to an additional reduction
from the assessed value of the property.
The homestead exemption for asset protection purposes
provides the owner of property with a shield from virtually
all non-lien creditors. This type of homestead exemption
is only available if the property is your primary residence
and a court makes a determination that the property is
within a municipality or outside of a municipality. If
your property is within a municipality, protection is
provided for only one half acre of contiguous land. If
your property is outside of a municipality, protection
is provided for 160 acres of contiguous land.
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