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TAX ADVANTAGE OF HOME OWNERSHIP

If you're a first time buyer you've probably heard that buying a borne may offer important tax advantages. If you've never owned a home, you may not understand what that means.

Actually, tax advantages may be so favorable they're the reason many people decide to buy a home rather than rent. Although many people enjoy the pride and sense of accomplishment that comes with owning a home, it's the tax advantages that really prompt many renters to make the plunge and buy a home.

The tax advantages to owning a home may come in three stages. First, when you own a home, the money you spend on home mortgage interest and on real estate taxes may be deductible from your taxable income, if you itemize deductions. The savings come in income taxes that you don't have to pay.

Just as an example, let's say you buy a home and your mortgage payment is $1,500 a month, including taxes. In the early years of a mortgage most of the payment is interest, so almost all of that $1,500 would be deductible when you itemize deductions on your income tax return.

When you multiply $1,500 a month times 12 months, you get $18,000 much of which could be deductible from your taxable income. If you are paying income tax at a rate of 28 percent, an $18,000 deduction means a tax savings of just over $5,000.00. or more than $400 a month. It's easy to see why people decide to buy. In this example, not only do you get a place to live, you get a tax break of $5,000, and all of the appreciation as your home grows in value.

Second, home ownership may offer some very important long term tax advantages. Generally, when you invest in something and then sell it, you are required to pay taxes on the profit you reaped from your investment. That's true of houses too. You are responsible for paying taxes on any profit you gain by selling a home. But under the current tax code you may defer those taxes as long as you buy a home of equal or greater value. People can and do buy and sell home after home, making a profit on each one and deferring the taxes each time.

 These three tax features, the deduction from taxable income, the deferral of tax on profits when you sell a home, and the exemption for senior citizens, are tax advantages that make home ownership such an important part of your financial planning. When you buy a home you not only save on taxes today, you may save on taxes far into your future.

TAXES, LICENSE & REGISTRATION

DRIVER'S LICENSES

 

State law requires new residents to have a Florida driver's license within 30 days of becoming a Florida resident. New residents need only to pass a vision test if they have a valid license from another state. Initial fee for Florida license is $20, valid for six years. Renewals are $15. The Division of Driver Licenses offices: Port St. Lucie, (561) 398-1297; Fort Pierce, (561) 468-3956. Offices are open Tuesday-Friday.

 

 AUTO TAGS New residents must apply for title, license plates and registration within 10 days of employment or enrollment of children in public school. Proof of ownership, proof of Florida property damage liability and personal injury protection coverage, verified vehicle identification number and verified odometer reading are required. Fees include: License plate, based on type and weight of vehicle, initial registration fee of $100 and title fee of $33.25. Motor vehicle transactions are handled by the county Tax Collector's office. (561) 462-1653 or (561)337-5600

 

 SEAT BELT LAW

 

The State of Florida initiated a Seat Belt Law that is designed for the safety of all automobile drivers and passengers. This law applies to the following:

• All front seat passengers, including the driver of a motor vehicle, must wear seat belts.

• Infants to nine months and/or weighing up to twenty pounds must be seated in a child/infant carrier.

• Children age nine months to four years and/or weighing twenty to fifty pounds must be seated in a child restraint seat. This law applies to cars, trucks, and vans operating on Florida roads. Any driver not abiding by this law may be fined $25.00 and assessed additional fines for any front-seat passenger fifteen years of age or under. Passengers sixteen years of age and over may be fined individually.

 

 INSURANCE Florida is a no-fault insurance state. It applies to all private and passenger motor vehicles in the state. Automobile liability insurance is mandatory. Currently, the law requires $10,000 PIP/No-Fault and Property Damage liability coverage.

 

 SCHOOL REGISTRATION Florida offers public education from kindergarten through high school. Kindergarten is compulsory, and children entering kindergarten must be five years old on or before September 1 of that year. To enter first grade, a child must be 6 years old on or before September 1. In order to register your child in Florida public school, you must show the following: a birth certificate, proof of a complete medical examination given no more than 12 months prior to registration, and a Certificate of Immunization from either a private physician or the local Public Health Department. Only a parent or legal guardian may register a child. Registration is handled at the school which the child will attend, Call the School Board Office at (561) 468-5000 to determine the appropriate registration site. Divorced parents must bring a copy of their divorce decree or documentation showing legal custody as well as proof of residence such as a utility bill or voter's registration.

 

 BOAT LICENSES Any person born after September 30,1980, who operates a powered boat with 10 or more horsepower, must take a state-approved boater safety course and be licensed by passing a one-time exam. Exceptions include: Anyone licensed by the Coast Guard as Master of a vessel; anyone operating on a private lake or pond; anyone accompanied in the same boat by a person 18 years or older, or otherwise exempt; visitors to Florida with proof of completion of an approved boater safety course in another state, or visitors from out-of-state for less than 60 days.

The Florida Game and Freshwater Fish Commission offers an 8-hour boater safety course at various times during the year, (561) 640-6100. The Commission also offers a correspondence course jointly with the Florida Marine Patrol, (800-342-5367). The boater safety course and exam are free. There is a $2 fee for a photo-identification card. The correspondence course booklet is available at county Tax Collector offices at 462-1650.

 

 BOAT REGISTRATION In Florida, all motorized boats, including documented vessels from other states, must be registered. Fees are based on length of boat. contact the county Tax Collector's office for more information. St. Lucie, (561) 462-3541.

 

 FISHING & HUNTING LICENSES Hunting and freshwater or saltwater fishing in Florida require licenses. Freshwater licenses for non-residents cost $16.50 for seven days, or $31.50 for one year; residents pay $13.50 per year. For saltwater fishing, Florida residents do not need a license if they fish from land or a structure fixed to the land. For fishing from a boat, non-residents pay $6.50 for a three-day license, $16.50 for a seven-day license, $31.50 for one year. Florida residents pay $13.50 for a one-year license. Hunting and Fishing licenses are available at county Tax Collector's offices, bait shops and sporting goods stores.

 

PET LICENSES

Dogs and cats must be Licensed in most counties/incorporated areas. Proof of rabies shots is required. For more information call: Port St. Lucie, (561) 871-5042; Fort Pierce, (561) 461-6177.

 

 VOTER REGISTRATION

Voter registration books close thirty days before an election. You are eligible to vote or register to vote if you are a citizen of the United States, at least eighteen years old by election day, and reside in St. Lucie County a full thirty days before an election. Primary elections are held on Tuesday following the first Monday in November. People may register by mail, by Internet (http://election.dos.state.fl.us) or when applying for driver's license, food stamps or library card. For information, call Supervisor of Elections, St. Lucie, (561) 462-1500.

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 North Hutchinson Island, Barrier Islands, Palm Beach, and Vero Beach   

Fact:

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By Yacht or car we are located directly across from the

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Rays Real Estate, Inc

Deborah Ray Broker

4075 Virginia Avenue

Fort Pierce, Florida 34981

Phones 772-460-1601

Fax 772-460-1603

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