Whether you’re looking forward to retirement or in need of a vacation home away from the frigid winter months, Florida is the place to start your journey. The Sunshine State is one of the seven U.S. states that are tax-friendly to their citizens through the lens of investing. Florida has an overall cheaper individual income tax rate, making the ability to invest in real estate that much better of an option. Alongside this, Florida has a stable and growing housing market making it that much easier to say ‘yes.’
A quick reminder tip: The income tax for your current state of residency will not be as lenient on the individual income tax for owning properties outside of the state. Always take the time to consult with an experienced legal professional to help you maneuver through the paperwork and understand the guidelines to follow.
Aside from looking at residential properties, there are many benefits for business owners as well. Florida doesn’t additionally tax for sole individuals (sole proprietorships) running a business nor do they tax during partnerships in business. Most states do in fact tax any revenue generated from partnership businesses. This is huge if you’re looking at a new location for your business or if you’re looking to team up with others!
Looking at the more technical side of business, there is another way to avoid corporate taxes: setting up an LLC as soon as possible. When you have an established LLC and you are the sole owner of the LLC, then it falls under the individual income tax. If you are currently residing in any other state you can hire an employee who lives full time in Florida. This employee will become known as the “residing agent.” As you already know, there aren’t additional taxes on business partnerships as well.
Before wrapping things up, there is one more benefit to investing in Florida we need to talk about: The Tax Cuts and Jobs Act of 2017. Under this act, there are areas around the state known as “opportunity zones.” These zones are typically lower-income urban communities or rural areas. In 2019, there were over 400 areas designated for this cause. The push is for investors to keep a long-term investment plan within these zones for an exceptional tax reduction.
Summing things up
At Icon Realty, we have plenty of experience with managing properties across the Sunshine State. We know their amazing benefits for all of our customers and partners and we are here to help show you the way!
The bottom line is that Florida has low income tax rates, no additional corporate tax rates and the housing market remains stable and growing with every fiscal year. There are countless additional benefits as well — the Sunshine State is calling you and here at Icon Realty are here to help you take that first step.