It can be very lucrative to sell property in Florida as non-resident. This is due to the remarkable rise in real estate values over the past few years and low inventory of properties for sale. Florida also makes it easy to sell your Florida home as a nonresident. You still need to pay attention to important details, despite the few hurdles.
Are there any taxes that I must pay on the sale of my Florida home?
The sale of real estate is not subject to tax in Florida. This applies regardless of whether you are a Florida resident. Therefore, you won’t have to pay any taxes to the state.
Federal taxes could be applicable. Taxes in your home state could also be applicable.
Be aware of and understand FIRPTA
International investors will find Florida real estate attractive. Foreign sellers are often involved in transactions. Foreign residents selling property in Florida should be familiar with FIRPTA. It can have an impact on the sale of your home.
Although it is not a tax, FIRPTA may ask the buyer to withhold 15% of the proceeds from the sale. This rule was put in place to ensure foreign sellers pay federal capital gains taxes. In certain cases, the Internal Revenue Service (IRS) may issue a Withholding Certificate which allows you to withhold.
Navigating FIRPTA can be time-consuming and difficult due to the many exemptions and exceptions. If you are a foreign investor and want to sell your property, it is important that you work with a tax professional who has experience with your country’s tax treaty. Visit the FIRPTA withholding webpage of the Internal Revenue Service for more information.
What is the Non-Resident Capital Gains tax?
Florida has no state income tax and also doesn’t have a capital gain tax. This is regardless of where you live. However, you may be subject to the capital gains tax in your home state or federal capital gains taxes.
This post was written by Josh Dotoli! Josh is the owner of Josh Dotoli Group which is a laser-focused real estate team at Compass comprised of industry experts selling Fort Lauderdale’s best neighborhoods. This dynamic group is one of the top-selling real estate teams in South Florida with over $94 million in sales in the past 12 months alone. Looking for Home Co Ownership? The Dotoli group has got you covered.