fbpx

Attracting Out-of-State Homebuyers Using S.A.L.T.

Randy Gilbert, J.D.

Chief Happiness Officer

Florida’s Title Insurance Company

[email protected]

(954) 500-Title (8485)

I always heard other states pay more taxes than Floridians, but I had no idea how much?!?  State and Local Tax (S.A.L.T.) deductions allow taxpayers of high-tax states to deduct local tax payments (e.g. property, income, and sales taxes) from their income on their federal tax returns.  This deduction used to be unlimited.  But starting in 2018’s tax year, the new Tax Cuts and Jobs Act, capped SALT deduction at only $10,000. So this is the first year to really “hit home.”  The SALT cap really negatively impacted Florida’s luxury housing market sales.

But by the numbers, it still makes sense for out-of-towners to move to Florida.  For ultra-wealthy residents in high-tax states, Florida is a tax-haven.  Florida, has no state income tax.  Conversely, residents of other states are forced to pay personal income tax, as much as: CA (13.3%), NJ (10.75%), NY (8.82%), CT (6.99%), and IL (4.95%); plus NY City charges an additional personal income tax.  Effective July 1, 2019, NY also implemented a 1.25%-3.9% “mansion tax” payable by buyers on residential properties of $1M or more; which is in addition to Sellers paying a 0.4%-0.65% state “transfer tax”, plus 1.0%-1.425% NY City transfer tax.

On January 1, 2019, the Federal Estate Tax exemption increased to $11.4M per individual, but some states still assess their own estate and inheritance taxes. These “death taxes” are charged in addition to any federal estate taxes that heirs will owe on assets you leave behind for them. Florida has no estate tax.  But in 2019, estate taxes must be paid on assets over: CA ($0), NJ (repealed estate tax in 2018, but still has inheritance tax), NY ($11.4M), CT ($3.6M but in 2020 will go to $11.4M), and IL ($4M). 

With all Florida has to offer, its tax savings could warrant buying a Florida luxury home.

FTIC is a national award winning title insurance company known for its white glove customer service and “No Junk Fee Guarantee.” TM

You May Also Like

Dr Tom McCawley
Thanksgiving ABC’s
November 1, 2023
Dr Tom McCawley
Carolyn z
No Pep in Your Step?
October 1, 2023
Recipe for Life ABC’s

Lenore Nolan-Ryan Lenore Nolan Ryan Catering & Cooking School Galt Ocean Plaza 3311 North Ocean Blvd, Ft Lauderdale, FL 33308 954.491.2340 lenorenolanryan.com Have you ever made a recipe that just inspired your whole being…was it the dish or was it just you? I seek life like I seek out food…I live every day, I feed

Unleashing LinkedIn: Elevate Your Professional Journey

Julie TalenfeldPresident of BoardroomPR1776 N. Pine Island Road, Suite 320Fort Lauderdale, FL [email protected] As we transition from summer to fall, it seems apt to go back to basics with how we present digital ourselves in the professional sphere. We could all use a little Linkedin refresh or if you’ve ever felt unclear on where to

Superfoods ABC’s Mushrooms

Lenore Nolan-Ryan Lenore Nolan Ryan Catering & Cooking School Galt Ocean Plaza 3311 North Ocean Blvd, Ft Lauderdale, FL 33308 954.491.2340 lenorenolanryan.com What is Superfood? Superfoods are nutrient-rich foods considered to be especially beneficial for health and well-being. So, when I go shopping, I choose foods that fuel my body, support immunity health, and taste

Is Your Thyroid Whacked?

Carolyn Zaumeyer Nurse Practitioner LowTE Florida 4540 N. Federal Highway Fort Lauderdale, FL 33308 954.791.4498 lowteflorida.com Do you wake up feeling tired? Are you so tired at the end of your workday that you just want to sink into the couch and be done? Fatigue is the number one reason patients come to LowTE Florida

Other Posts

No. 1 Best Seller Author

Dr. Miriam Zylberglait, MD, Facp, Abom 305 466 4008virtualwellbeingmd.com21097 NE 27th Ct #480 Aventura, FL Meet Dr. Miriam Zylberglait, author of “The 3G Cycle of Life: The Secrets for Achieving Joy, Meaning and Well-being. Dr. Z’s #1 Best Seller has been awarded by the 17th Annual National Indie Excellence Awards (NIEA 2023) and the Florida

Low Testosterone Harms Men’s Health?

Carolyn Zaumeyer Nurse Practitioner LowTE Florida 4540 N. Federal Highway Fort Lauderdale, FL 33308 954.791.4498 LowTEFlorida.com Testosterone is an important hormone for both men and women. Without an optimal testosterone level, you can’t build muscle and over time you lose muscle mass and strength. In men, a low testosterone level is associated with increased cardiovascular

Summertime and The Grillin’ Is Easy

Lenore Nolan-Ryan Lenore Nolan Ryan Catering & Cooking School Galt Ocean Plaza 3311 North Ocean Blvd, Ft Lauderdale, FL 33308 954.491.2340 lenorenolanryan.com Whether you’re grilling on a guaranteed-for-life Weber, the cult-followed Big Green Egg or a simple in-your-kitchen George Foreman, summer is about grilling! What is grilling all about? …the food! Steak! Usual cuts, nah,

Lenore Nolan Ryan
Does Your FemiNeed a Lift?

Carolyn Zaumeyer Nurse Practitioner LowTE Florida 4540 N. Federal Highway Fort Lauderdale, FL 33308 954.791.4498 LowTEFlorida.com FemiLift® is a state-of-the-art, minimally invasive outpatient solution that incorporates CO2 technology to provide optimal care for various feminine concerns. FemiLift helps rejuvenate the vaginal area which may improve mild urinary incontinence, sexual satisfaction, and decrease vaginal infections. The