Buying a home in Florida is an aspiration for many retirees who have dealt with cold and snowy winters for too long. While spending winters in the Sunshine State means the end of shoveling snow from your walk and maneuvering along icy roads, there are reasons to consider establishing Florida residency instead of just using it as a second home. With it comes some financial perks that make this lifestyle change worthwhile. In addition to saving money on a snow-blower, what makes this attractive is that Florida does not have a state income tax or a state inheritance tax and the Florida Homestead Exemption means you don’t have to pay property tax on up to $50,000 of the assessed value of your permanent home.
To maintain permanent resident status, you must live in Florida for 183 days out of the year; and it’s important to have documentation that supports the fact that you spend most of the year in Florida. Beyond carefully documenting your move, we suggest you have an attorney who is licensed to practice law in Florida revise and update your estate plan to conform to your new state’s laws. Once you’ve found your new local medical professionals, be sure to have your records forwarded to them.
Here are seven steps you should take to help prove your change in residency if it’s ever challenged by a taxing authority.
By paying close attention to these steps, you’ll be able to focus more of your energy on the golf course, soaking up some sun and becoming more involved in your new community. Isn’t that what retirement is all about?