I have a home with I bought in 1996 and it's currently assessed at about
250K but the market value should be around 400K. Florida has this SOH (Save Our Home) rule that prohibits a home from raising more than 3% a year in assessed value. Earlier this year I bought another home at 450K so I know next year it will be taxed at 450K. Both homes are in south Florida one in Broward County and one in Miami-Dade.I am remodeling the new home now and it will be another six months before it will be ready to move in. Then I will plan to sell the current home but with the current market trend it may be hard to sell.
My question is should I keep the current home for homestead exemption now even though the new home will be taxed at it's full sale price because if I apply for Homestead for the new home, the existing home tax will suddenly jump to 400K? So it is better to not change my current exemption until I sold the current home? Do I have my logic right?
Thanks,
MC