Buying and Transferring to LLC same year trigger TWICE the ppty tax hike in Florida?

[Mary Joe]

Hello, if I purchase a rental property in Miami this year and close under my name, and then transfer the title to a LLC the same year, do I need to anticipate TWO times the property tax hike for next year?   First reassessment when closing under my name, and then second reassessment when transferring the title to a LLC  , all happening within 30 days in the same year.

Any advice would be appreciated.  Thanks 

[Diego Curbelo]

Hi Mary!

If you purchase a rental property in Miami and close under your name, the property will be reassessed for property tax purposes at that time. When you subsequently transfer the title to an LLC within the same year, it will typically trigger another reassessment.

This means you are likely to face two property tax reassessments: one when you close under your name and another when you transfer the title to the LLC, even if both transactions occur within 30 days. This is because the transfer to the LLC is considered a change in ownership, which prompts a reassessment based on the fair market value at the time of the transfer.

Admittedly, property tax implications are not my area of expertise, so I strongly recommend consulting with a local real estate attorney or tax advisor for precise guidance tailored to your situation.

Additionally, if you need property management services for multifamily properties in Miami, Curbelo Capital Management specializes in this area and would be happy to assist you.

Best regards,

Diego Curbelo

[Drew Sygit]

@Mary Joe in most states, a property tax reassessment chases market value.

So, if you do the 2nd transfer soon after the first, the impact on property tax amount should be minimal.