Tuesday, August 31, 2010
Planning Pays Off….Especially when it comes to Taxes!
Florida tax preparation services can save you a bundle. So many tax laws are out there and are changed each year that no one wants to read up on everything! Leave that to the professionals. In choosing a tax preparation service, keep in mind that many of the retirement community have a home in Florida that is used for a vacation home. Just like many other states, you are required to pay property tax. Now, due to the median home valuing at $189,900 the taxes average out at around $1,500. Seems a bit high, right? Well, Florida is ranked at 29th out of the 50 states for highest tax amounts.
If you need to reduce the amount you would need to pay based on your income guidelines, there are a couple of avenues you can take and that your tax preparation service can assist you with. The first is that Florida wants to know if you use the home for living year round or using part time as a vacation home.
If you do own a vacation home, full property taxes will need to be paid. However, the IRS made a change to law 1031 which states that using the property as an investment can be sold and the proceeds of the sale can be tax free if then reinvested as a property in a similar fashion. This strange change means for homeowners that they were not permitted to stay at their own home in Florida because the property could be sold tax free.
This is just one law…imagine all the others. Don’t mess around…call a Florida tax preparation office today.