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| **Enter MLS numbers, separated by commas. Example: F12345,
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 The assessed value
has in recent years been about 80-90% of the market value, however, in recent
months the decline in market value has affected this. Regardless, each time a
property is transferred the property is reassessed for taxable value, so you
cannot rely on the current owner's taxes to estimate your new taxes. You must
find the tax multiplier and the assessed value. There is a tool on the Broward
County Property Appraisers Website that will estimate taxes on a property. You
can use 2% of the purchase price as an estimate of your yearly taxes. Florida
is also a Homestead State, one of only a few States in America, which grants a
tax exemption to residents- those who reside here over 183 days per year and
report themselves to the County. This exemption has recently been raised to
deduct $50,000 off the assessed value of the home before applying the
multiplier. This exemption must be reported before April of the year you
qualify. Also, taxes are paid in arrears, so you will pay the current owners
tax base for the remainder of the year if you purchase a new property, and then
the next year you will pay at your new tax rate.
When you transfer a
property it must be recorded with the County and State and there are taxes
associated with this. You can consult a Tax Attorney or Title company for the
exact amounts, however, it is roughly 7/10ths of one percent of the value of
the item recorded, either the Deed or the Mortgage, or both depending on who is
paying the closing costs of the transaction.
When a Foreign National
sells a home they are required to pay Capital gains taxes anywhere in the
United States and this is regulated by a ruling called FIRPTA or Foreign
Investment Real Property Tax Act.
Here is an excerpt:
"withholding tax requirements under
IRC Section 1445 on "Dispositions of United States real property interests" by
a foreign person or entity. A person who meets the substantial presence test
(183 day rule per IRC Section 7701) or is considered a resident alien for
income tax purposes is no longer considered to be a foreign person.
A
Form 8288 ("U.S. Withholding Return for Disposition by Foreign Persons of U.S.
Real Property Interests"), is required to be filed by the Transferee (Buyer or
Designated Agent) of the U.S. real property interest. In addition, Form 8288-A
(“U.S. Withholding Statement on Disposition by Foreign Persons of U.S.
Real Property Interest”) must be attached to Form 8288. The amount of tax
required to be withheld and paid to the IRS by the buyer is 10% of the amount
realized on the transfer, or, 35% of the gain recognized by a domestic
corporation, domestic partnership, domestic trust or domestic estate.
The tax on Form 8288 is due the IRS by the 20th day after the Date of Transfer.
Penalty and Interest will be charged on late filed Forms 8288 (received after
the 20th day from the date of transfer). An extension to file
Form
8288 is permitted if the taxpayer is awaiting a response to their application
for a withholding certificate. Upon receipt of an approved withholding
certificate or rejection letter, the taxpayer has 20 days from the date on the
certificate/letter to file Form 8288. If not filed by the extended date,
penalties and interest will be charged."
I hope this is helpful. If
you need further explanation or representation feel free to call. |
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