Tax Consequences of Buying a Home in Florida Today!
For those who are looking to buy a home in Florida, there are a few additional costs to be considered. Personal taxes are greatly impacted with the ownership of real estate in Florida. Like many states, Florida requires that people pay additional taxes and fees when buying a home.
Taxes and fees that come with owning a home in Florida:
In Florida, you will have to pay a stamp tax that is based on the amount of mortgage you take out to finance the property. The state currently charges 35 cents for every 100 dollars in debt you take out to buy a property. For a $300,000 mortgage, this will cost you $1,050 paid at closing of the loan.
Real Estate Taxes
While property real estate taxes in Florida are more affordable than other parts of the country, it could still cost you several thousand dollars of extra costs per year to be considered. The amount of taxes that you pay can vary based on the property you buy and what county it is located in.
When owning property in Florida, some relief can come from federal income taxes. Mortgage interest, up to a level based on your mortgage balance, and property taxes, up to $10,000 per year, are deductible. If your total deductions are in excess of your standard deduction, you could see a sizable decline in your total tax bill.
When buying a home in Orlando, real estate attorneys Nishad Khan P.L. will be able to provide you with a variety of real estate services and will provide tax-planning assistance. We can help you find ways to minimize your tax liability associated with buying and selling a property, which could save you thousands in extra tax charges.