Moving into a home after jan 1

[David Jesse]

I purchased a home in Florida which would be my primary house. My closing is a few days after Jan first. The home is already homesteaded by the last owners. From what I understand I can't homestead the property until 2021?  But I would still pay homestead property tax since the last owners had it homesteaded? Is my understanding correct? or would I pay a non-homesteaded property tax rate in 2020?

[Karen A.]

You should file for your own homestead exemption right away so you don't forget about it and miss the deadline for the following year.  From my experience, you will get the benefit of the previous homeowner's homestead (and their deductions) for 2020, since they were the owner on/after January 1st.  Then in 2021 you will be reassessed (due to the sale of the home) and your own deductions will come into play for 2021.

This has been the way it worked for my 9 purchases as well as a friend's purchase 2 years ago.  She got the benefit of the previous owner's low taxes for her first round of taxes (the former owner had bought the house in the 70s and was a widow) but then the house was reassessed and her taxes nearly doubled from the first year.  I had advised her to start putting more money into her escrow account to cover the increase that was coming, and it turned out I was right and she was prepared.