Congress Passes Extensions – Homebuyer Tax Credit & Flood Insurance

Good news!  On Wednesday the U.S. Senate approved a bill extending the closing deadline for home buyers trying to take advantage of the tax credit.

The Senate approved the bill that extends the closing deadline for eligible home purchase contracts.  On Tuesday the U.S. House of Representatives passed the bill, and it now goes to President Obama for his signature.  The deal will give home buyers with contracts signed by April 30, 2010 until September 30, 2010 to close on their purchases and still get the tax credit, which is $8,000.00 for first time home buyers and $6,500.00 for homeowners buying a new primary residence.

In addition, the U.S. Senate has passed the National Flood Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the National Flood Insurance Program until September 30, 2010.  This will allow transactions to move forward.  The bill is retroactive and covers the lapse period from June 1, 2010 to the date of enactment of the extension.

For more information please contact me at (305) 329-4929 or solovay.m@ewm.com.

Aventura approves budget that keeps tax rate steady

According to Jared Goyette in his recent Miami Herald article, the Aventura City Commission gave final approval to a $49.9 million budget for the 2009-2010 fiscal year that keeps the tax rate steady and cuts spending by 12%.   Officials say that the funding cuts will not result in a reduction of services, programs or employees because the city was able to reduce spending on capital improvement projects by approximately 67%.  This was accomplished mainly due to the fact that many projects that were still under contruction last year have already been completed.

Aventura’s tax rate of $1.73 per $1,000 of assessed property value will be the same as last year’s rate.  The city now has the lowest tax rate of any municipality in Miami-Dade County.

For more information please contact me at (305) 329-4929 or solovay.m@ewm.com

Portability or Transfer of Homestead Assessment Difference

Homesteaded property owners can transfer their Homestead Assessment Difference (up to $500,000) to a new homestead property within two years of abandoning their previous homestead. If the market value of the new homestead is more than the previous home’s market value, the entire homestead assessment difference can be transferred up to $500,000. If the new homestead has a lower market value, the amount of the accumulated benefit that may be transferred is proportional to the value of the new homestead property.

You can estimate the real estate tax on your new property by going to the Miami-Dade County Tax Collector’s website.

How do I obtain a Homstead Exemption on my property?

If you purchase a home after January 1st, you may inherit the previous owner’s Homestead Exemption and assessment limitation for that year. The following year, however, the homestead exemption and assessment limitation will be removed resulting in a higher assessed value. If this property is your permanent residence to the exclusion of all others, you will have to file an original exemption application by March 1st. For additional information on deadlines and application forms, please contact the Property Appraisal Department at (786) 331-5321.

Obtaining a Homestead Exemption will qualify you for 2 tax benefits:

1. A reduction of $50,000 off your assessed value.
2. Beginning in the 2nd year, your assessed value will not increase more than 3% regardless of the increase in the property’s market value.

For more information contact me at solovay.m@ewm.com