HOMESTEAD EXEMPTION - Can I rent out my Condo and keep the Homestead exemption on it?

By: Denise & Melissa Stewart

This is a question we are asked frequently:  Can I rent out my Condo and keep the Homestead exemption on it?

Generally, the answer is no.

Section 196.061, Florida Statutes, says that rental of a dwelling previously claimed to be a homestead for tax purposes "shall constitute the abandonment of said dwelling as a homestead." If the rental begins after January 1 of a year (regardless of the shortness of the rental period) and there is a rental covering ANY part of the next consecutive year, that is an abandonment of the homestead under the law as of the second year. A seasonal rental (February-March) in two consecutive year would disqualify the property for homestead. Likewise, a one-time rental from December-February would also disqualify the property as it would involve portions of two consecutive years. The bottom line is that your facts may be different, and you may need to consult with an attorney just to be sure...

If you are purchasing a condo in the State of Florida, and you plan on filing for a Homestead Exemption, it may be better to ask this question in advance so that your taxes are in order. Just because the prior owner of the condo you are buying had homestead exemption does not necessarily mean that you will also have homestead exemption on the property. You can visit the website www.bcpa.net for more answers to questions like this.

The only individuals allowed under the law to rent out a homesteaded property while retaining the exemption are active duty military personnel. Simply provide us with a copy of your military orders and we'll keep your exemption intact. Note: State law formerly extended these rights to other federal employees (FBI, DEA, civilian DOD, congressional employees, etc.) on duty assignments outside of Florida -- but that law was changed in the late 1960s during the Vietnam War to limit this rental option only to active duty military. The Legislature felt this was appropriate because active duty military personnel do not have the option of quitting the job and staying at home -- versus all others who have the option of resigning their positions.

These are the other questions that you can find answers for:

• HOMESTEAD EXEMPTION - Can I rent out my homestead and keep the exemption on it?
• HOMESTEAD EXEMPTION - Do I need to re-apply for my Homestead Exemption every year?
• HOMESTEAD EXEMPTION - Does my existing Homestead Exemption move with me to my new house?
• HOMESTEAD EXEMPTION - How do I file a "Notice of Homestead" to protect myself from creditors?
• HOMESTEAD EXEMPTION - How do you assess new additions to previously Homesteaded properties?
• HOMESTEAD EXEMPTION - How does Florida recognition of same-sex marriages affect my homestead?
• HOMESTEAD EXEMPTION - How is the $50,000 exemption applied?
• HOMESTEAD EXEMPTION - How much will I save with a Homestead Exemption?
• HOMESTEAD EXEMPTION - My market value dropped so why did my assessment go up?
• HOMESTEAD EXEMPTION - What are the requirements for a Homestead Exemption?
• HOMESTEAD EXEMPTION - What documents do I need to file for a Homestead Exemption?
• HOMESTEAD EXEMPTION - What is "PRUCOL"?
• HOMESTEAD EXEMPTION - What is "Save Our Homes"?
• HOMESTEAD EXEMPTION - What is a Declaration of Domicile, do I need one, and where do I get a copy?
• HOMESTEAD EXEMPTION - What is the history of the Homestead Exemption?
• HOMESTEAD EXEMPTION - Where do I file for a Homestead Exemption?
• HOMESTEAD EXEMPTION - Will I lose my Homestead exemption if I move out to substantially remodel or demo/rebuild my home? What if I buy it from a Homesteaded seller and then tear it down?
• HOMESTEAD EXEMPTION - Will I lose my exemptions if I add people to my title as joint tenants with rights of survivorship?
• HOMESTEAD EXEMPTION - Will I lose my exemptions if I place my home in a life estate for me, and with a remainder to my kids?
• HOMESTEAD EXEMPTION - Will I lose my exemptions if I place my home into a trust?
• HOMESTEAD EXEMPTION – If approved, how will the $75,000 exemption be applied?
• HOMESTEAD EXEMPTION – If approved, when will the $75,000 exemption be applied?

 If you need assistance with a condo purchase, please contact Denise Stewart at: Denise@condo.net or call 866 783 6011