Florida Homeowners: How to Unlock Tax-Free Equity When You Sell

🏡 Florida Homeowners: Don’t Miss These Two Overlooked Tax Benefits When Selling Your Primary Residence

If you're thinking of selling your home in Florida, there are two powerful tax advantages you should understand before you list — and most homeowners aren’t taking full advantage of both.

These benefits can significantly impact your bottom line when it’s time to sell and move:

✅ 1. Florida’s Property Tax Portability – Save Our Homes Amendment

Florida’s Save Our Homes (SOH) amendment limits how much your home’s assessed value can increase each year for tax purposes. Over time, this often creates a large gap between market value and assessed value, resulting in substantial tax savings.

The good news? When you sell your primary residence, you can transfer up to $500,000 of those tax savings to a new Florida homestead — as long as you do it within two years of January 1st of the year you gave up your previous homestead.

This is called portability, and it can drastically reduce the property taxes on your next home — whether you're downsizing, upsizing, or relocating within Florida.

✅ 2. Federal Capital Gains Exclusion – Section 121 of the Internal Revenue Code

Under federal law, when you sell your primary residence, you may be able to exclude up to $250,000 (single) or $500,000 (married filing jointly) in capital gains from your federal income taxes.

To qualify:

• You must have owned the home for at least two years, and

• Lived in it as your primary residence for at least two of the last five years before the sale.

This benefit can save you tens of thousands in taxes — or more — depending on how much your home has appreciated.

🧠 Why Timing Matters

These benefits don’t last forever.

• The federal exclusion is based on ownership and use within the last five years.

• Florida’s portability expires two years after the year you leave your homestead.

If you’re not sure whether now is the right time to sell, understanding your eligibility for these tax advantages can help you make a smarter decision — not just emotionally, but financially.

🤝 Work With an Expert Who Understands the Details

With over 25 years of experience in South Florida real estate, I’ve helped hundreds of homeowners navigate major life transitions — and protect their equity at every step.

Whether you’re relocating, retiring, downsizing, or just exploring your options, I’ll guide you through the process with clarity and strategy — and connect you with trusted professionals, including real estate attorneys and tax advisors, when needed.

📞 Ready to Explore Your Options?

Let’s review your current equity, timing, and tax benefit eligibility together. There’s no pressure — just a clear, personalized conversation to help you make the most informed decision possible.

You’ve worked hard for your home. Let’s make sure you keep more of what you’ve earned.

📌 Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Homeowners should consult with a licensed tax advisor or real estate attorney for personalized guidance.

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