18
3 exam questionsLow Priority
Property taxes, homestead exemption, capital gains, and tax implications.
Quick Explanation
5 min readFlorida property taxes are based on assessed value. The homestead exemption reduces assessed value by up to $50,000. Save Our Homes caps annual increases at 3% or CPI. Ad valorem taxes are based on value; non-ad valorem are flat fees.
Key Points — What Matters for the Exam
1
Homestead Exemption = up to $50,000 reduction in assessed value for primary residence2
Save Our Homes (SOH) = caps annual increase at 3% or CPI, whichever is less3
Ad valorem taxes = based on property value ('according to value')4
Non-ad valorem = flat fees (drainage, lighting, etc.)5
Tax year in Florida = January 1 to December 316
Taxes paid in arrears in Florida (paid after the period)7
1031 Exchange = defers capital gains on investment property exchangesMemory Trick
Homestead = $25K off for all taxes + $25K off for non-school taxes = up to $50K total. SOH caps the increase at 3% or CPI.
Common Trap Answers — Don't Fall For These
Homestead exemption is up to $50,000 (NOT $25,000)
Florida taxes are paid in ARREARS (after the period)
SOH applies only to HOMESTEAD property (not investment property)
Key Terms for This Unit (2)
Homestead Exemption
Florida: Up to $50,000 reduction in assessed value for primary residence.
Save Our Homes (SOH)
Caps annual increase in homestead assessed value at 3% or CPI, whichever is less.