Florida does not have a general state capital gains tax, but there is an excise tax charged on real estate gains at the state level. In this article we will look at capital gains tax on real estate in the state of Florida.
What is Capital Gains Tax?
Capital gains tax is a tax on the profit you receive when you sell an asset, such as a home or other real estate. The amount of capital gains tax you are assessed depends on how long you held the property, what it was used for, and other related factors.
In the state of Florida, there is a 6% Excise Tax that applies to all profits from the sale of real estate. This means that if you sell a home for more than you paid for it, then you must pay 6% of the profit (the difference between the purchase price and sale price) to the state.
Exemptions and Exclusions
There are certain exemptions and exclusions to the tax. For example, if the home is your principal residence and has been owned for at least two years, there is no capital gains tax. There are also other exemptions and exclusions depending on your circumstances, so it is important to speak with an experienced tax accountant to determine what you may be eligible for.
In conclusion, there is an excise tax of 6% on the profit of real estate sales in the state of Florida. There are certain exclusions and exemptions from the tax, and it is important to speak with an experienced tax accountant to determine what you are eligible for.