Luxury real estate sales in Florida could get a boost from a rule in the federal tax bill that President Donald Trump signed into law in December.
The rule caps “SALT” or state and local tax deductions at $10,000, when before those deductions were unlimited. Those include real estate, and either income taxes or sales taxes. For wealthy people who itemize deductions, income taxes alone exceed that amount, let alone property and sales taxes. If they also live in a relatively high tax state such as New York or New Jersey, that could make officially declaring Florida their “home” a more attractive proposition because it has no state income tax.
Luxury properties in Collier County have been hot in the first quarter; some feel the $10,000 cap may have played a part. Home sales priced above $1 million in Naples during the first three months of the year were up 61 percent, according to the Naples Area Board of Realtors, and pending sales of condominium’s priced at $2 million or more were up 109 percent from the same time last year.
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