How Snowbirds Save Thousands on Taxes by Becoming Florida Residents

Snowbirds make it a habit of escaping harsh winter conditions by vacationing in a warmer southern climate, and even by possibly buying a second home in Florida. This practice is widespread, and it allows more people to relax in the more favorable Florida weather.

For the most part, several tax twists discourage snowbirds from making the long trip south. Fortunately, there are some techniques you can use to bypass Uncle Sam and have a stress-free vacation.

How to Save on Taxes By Becoming a Florida Resident

The principle here is to understand the rules. Once you spend more than 183 days in the state, you become a resident. It is not the only factor, however. To qualify as a resident, you need to pass the threshold of moving from a high tax state. Considerations include taxes paid for services received and maintenance of an abode. The more physical presence you maintain in the State, the higher your chances of saving on taxes.

Where you make a living is also a critical consideration. If you earn an income from two states, there is a likelihood that you will be double taxed. Snowbirds are advised to get a line of credit to prevent this loophole in the system.

Perks

Establishing yourself as a Florida resident gives you plenty of perks. There is no income tax, and the state provides several property tax exemptions. Ensure you get a Florida-registered driver’s license. This document proves you are a resident, especially if you spend most of your time in the sunshine state.

Voter registration is also a critical contributor. Whether you have ties to another state or not, it is vital to ensure you register as a voter in Florida. It is one of the ways to guarantee you save on taxes.

Another trick is to buy a home in Florida. This state also has the most competitive housing market, with the price of a non-distressed home averaging $216,000. Foreclosure homes also have a 28% lower sales price than non-distressed homes. You can get a large residence at a steal if you do your research. Buying a second home will also make it cheaper and more convenient to travel between states.

Florida is the best place to vacation for snowbirds. Becoming a resident by buying a second home will save you a substantial amount in taxes and make your experience more fulfilling. Contact us today for help buying a second home in Florida.