People have been rushing to Florida from out of state, eager to participate in the current real estate market. As you may know, many states have high taxes on properties there. Florida, unlike these states, does not tax your personal income or estate. With these benefits, more people are moving there to take advantage of the tax shielding.
Even better is how property tax is assessed. It’s based on the market value of a property as of the first day of January in the year it’s purchased or sold. This is ideal if you plan to purchase a property for a steal and then sell it quickly before the end of the year. You’ll save on taxes and be able to make a greater profit.
With the tax changes in 2019, more people are moving to Florida to avoid future surprises during tax season. In New York, for instance, residents can pay up to $10,000 to the state. May see that move to Florida as a $10,000 in tax savings, if nothing else.
There is also the encouraging sign of mass migration to Florida. Those who buy properties now have a better chance of seeing their values increase as property becomes scarce. Some purchase commercial properties, like rental units, knowing that these units will likely fill with long-term tenants, since other rentals and properties are so difficult to find.
If you plan to move to Florida, these are a few benefits to consider. With the right purchase, you could set yourself up for a major profit in the future.