The Florida real-estate investment industry is enjoying a tax break, thanks to Gov.
Bill Haslam signed into law a bill that makes it easier for people to qualify for a state tax deduction for their investments.
The measure was introduced after the SEC filed a lawsuit against Florida for its failure to properly disclose to investors that it has no plan to comply with new federal rules.
“This is a significant victory for Florida homeowners,” said Joe Nocera, president of the Real Estate Investment Trust, which represents Florida realty investors.
“It will make our homeowners safer and provide the most tax-advantaged tax savings for our state’s homeowners.”
Under the bill, anyone who has made a “high-cost” investment of at least $100,000 and has invested more than $1 million in Florida realtors would qualify for the state’s property tax deduction.
If the investor invests more than that, the investor can deduct the difference from their taxable income.
In the case of a homeowner who has no income, the value of the investment will be included in the homeowner’s taxable income, which will be taxed at the rate of 5.75% for homeowners who are over $200,000.
The legislation also allows investors to deduct their investment from the cost of their home.
The state has a $100-per-unit tax rate for homeowners, which is the highest in the country.
It also has a tax rate of 2.5% for renters.
The tax break applies to investments made in real estate in Florida that were purchased between April 1, 2017, and June 30, 2018.
The measure will apply to any investments made after June 30.
The Florida Real Estate Association is pleased with the measure.
“Real estate is the most popular investment in Florida, and Florida has a great tax code,” said John Nolen, CEO of the state real estate association.
“We are pleased to see the Governor’s signing legislation that will help Florida homeowners and investors with their tax obligations.
This measure is the best we can do for the investment community in Florida.”
The bill now goes to the state Legislature for a final vote.