To All Buyers in 2010

Tax Credit for New
Home Buyers in 2010:

The Worker, Homeownership and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence. The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occurring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

Tax Credit for

Existing Homeowners

The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a person who has owned and resided in the same home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. That is, both spouses must qualify as long-time residents, with at least five years of principal residency for each. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.

The Worker, Homeownership and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).

For more information on the New and Existing Homeowners Tax Credit, go to

http://www.irs.gov/newsroom/article/0,,id=204671,00.html

It's Time to File Your Homestead Exemption

All legal Florida residents are eligible for a Homestead Exemption on their homes, condos, co-op apartments and certain mobile home lots if they qualify.  The Florida Constitution provides this tax-saving exemption on the first and third $25,000 of the assessed value of an owner/occupied residence.  While a complicated formula is used to explain this, (an additional $25,000 only applies to the non-schools portion of your tax bill), the bottom line is that the basic homestead exemption saved a Broward homeowner in 2009 anywhere from $686 to $1,015 (depending on your city's millage rate), in annual tax savings for all homes with a value of $75,000 or higher.

You are entitled to a Homestead Exemption if, as of January 1st, you have made the property your permanent home or the permanent home of a person who is legally or naturally dependent on you.  By law, January 1st of each year is the date on which permanent residence is determined.

How to Apply for Homestead Exemption:

You may file for Homestead ONLINE by going to http://www.bcpa.net/ and clicking the large yellow button in the navigation menu on the top left side of the page, or you may file by visiting either of the Broward County Property Appraiser offices listed below:

The timely filing period for Homestead Exemption for 2010 is March 3, 2009, through March 1, 2010.  However, if eligible for an exemption, you may late file for a 2010 exemption until September 20, 2010.

What You Need When Filing for Homestead:

When filing an application, you must bring the following items listed below.  To claim 100% coverage, all owners occupying the property as Tenants in Common, (i.e., proportional share co-owners), must file in person on jointly held property.  In the case of a husband/wife, (Tenants by the Entirety), or Joint Tenants with Right of Survivorship, (JTRS), any one owner may qualify for 100% coverage, although it is always highly advisable to have all eligible owner-occupants to file.  If you are married and the Deed has different last names for a husband and wife, a marriage certificate must be presented if the deed does not indicate the two co-owners are "husband and wife".

1. 
   
   Proof of Ownership:  in general the recorded Deed or Co-op Proprietary Lease must be held in the name(s) of the individuals applying for Homestead.  You do not need to bring a copy of the deed or co-op lease if the document has already been recorded in the official records of Broward County.  If the property is head in a trust, we also need either a notarized certificate of treust or a complete copy of the trust agreement.  Note:  most taxpayers prefer to use the simple Certificate of Trust form, instead of submitting the entire trust for our review, as it better protects the privacy of your estate planning and other financial matters.
   
   
   
2. Proof of Permanent Florida residence - preferably dated prior to January 1 of the tax year for which you are filing:  Florida Driver's License is REQUIRED. In addition, applicants must present EITHER a Florida Voter's Registration or a Recorded Declaration of Domicile.  If applicant is a NON-US CITIZEN:  applicant must have the items listed above AND proof of permanent residency, asylum/parolee status (or other "PRUCOL" status).
3. If you or your married spouse have a Homestead Exemption in any other county, state or country, (or an equivalent permanent residency-based exemption or tax credit, such as New York's "S.T.A.R." exemption), on another property you also currently own, you will NOT be eligible for a homestead in Broward until after you surrender the exemption in that other jurisdiction.     
   

The State-approved application form requests certain information for all owners living on the premises and filing:

• Current employers of all owners
• Addresses listed on last IRS income tax returns
• Date of each owner's permanent Florida resident
• Date of occupancy for each property owner
• Social security numbers of all owners filing (including the Social Security numbers of any married spouses, even if not named in the deed). 

For further information on this or any other real estate questions, please call me at 954-465-9804