Buying a home in Florida is always a sweet deal. You get to enjoy the beautiful weather, a high ROI, and of course, plenty of tax benefits. No wonder the real estate market is flourishing heavily.
If you own a property in Florida, we have some good news for you. Listed below are the top 5 ways you can take advantage of state and local tax deductions, and save some serious bucks!
If you paid your mortgage insurance premium (MIP) during the previous fiscal year, you are eligible for an income tax deduction. There are certain conditions you have to fulfill in order to enjoy this benefit and get a full deduction:
When you're paying back your mortgage premium, a certain amount goes towards the principal money you borrowed, and the rest goes towards the interest payable on the mortgage. As a homeowner based in Florida, you can file deductions for the interest amount you paid in the last year.
Here are the criteria for eligibility of deduction:
If you're in Florida, chances are you've already paid your real estate tax through the escrow account linked to your mortgage. Else, you might have paid it directly to the federal authority. No matter what the situation is, the amount you paid is eligible for deduction.
The deductible amount is limited to $10,000 for each individual homeowner and $5000 if a married couple is filing their returns separately.
During 2021, if you made any significant changes to your home on medical grounds, you are eligible for a partial deduction.
The only condition is that you are allowed to deduct the expenditure amount that is more than 7.5% of your AGI.
A full deduction is available if the home improvement equipment did not increase the value of your property. Things like building a ramp, improving bars and railings, installing warning or safety systems, as well as the expense that is needed to run the medical equipment, are all eligible for deduction.
This is not a deduction, but rather an exemption available for all homeowners of Florida. If you purchased your property in the last tax year, then you can get an exemption of $25,000 on the first $50,000 of the property's assessed value. The property in question must also be your permanent residence.
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