Why Florida’s Not Just a Sun-seekers’ Haven

Mark Twain said:

“I shall never use profanity except in discussing taxes.”

I’ll refrain from the profanity, but I do want to discuss one of life’s two certainties.

Florida has long been the destination of choice for sun-seekers looking for warmer climes, beautiful beaches and an ocean breeze. But a lesser-known draw to the sunshine state is its accommodating tax laws, something the financially savvy have long been aware of. In fact, from a wealth preservation and tax savings perspective, claiming Florida as your primary residence may be a strategic financial decision.

Today I’m filming from the spectacular private beachfront at one of our newest listings on Siesta Key, 3910 Solymar, one of the luxury beachfront properties that set Sarasota apart. I’ll explain the Florida tax laws that benefit you, and a key differentiator which sets Florida apart when it comes to protecting your main asset: your home.

Sunshine State Equals Tax Rebate

During the last several months there has been much discussion on where to live and how to hold on to more of the money that we earn. I have clients coming to Sarasota to establish residency for several reasons including:

• Florida has one of the best homestead protection laws in the US. This protects a Florida resident from losing their home to any creditor or any other lien except in the case of non-payment of mortgage.
• Florida has no state income tax. In NY, state and local governments take over $14 of every $100, in Florida that number is 0.
• Florida is in the top five best states in the US for favorable small business taxes. And for property taxes Florida is in the middle of the pack.

These facts have helped make Florida, and particularly Sarasota, one of the top retirement destinations in the US. The tax laws also help to create an influx of buyers looking for a luxury Florida property, and a tax break, along with the other great Sarasota perks which come for free: lifestyle, water, warmth and sunshine.

If you own multiple homes, you do have to prove your Florida home as your primary residence in order to gain the tax benefits the state offers. You can do this by showing your children – if you have them – are in school here, your utility bills are received here, your tax statements are received here, and your driving license and voter registration are in the state of Florida. If you can demonstrate in these ways that your intent is for your Florida home to be your main residence, then you will get to enjoy, not only the incredible Sarasota living, but may save a lot of your money too. A win win situation.

Note: Since I am not a lawyer I am not giving legal advice. I want to thank Jonathan Gopman, asset protection lawyer, and Juan Villaveces, real estate lawyer, for sharing this valuable information with me.