Before the end of last year, the new tax reform bill was approved and was implemented at the beginning of 2018. This further improved the status of Florida as a tax haven. According to financial planners as well as real estate agents, the increase in the number of people moving in Florida is only one proof that the state is the best for people who wanted to get the most of their hard-earned money. It is expected that new businesses will start applying for FL tax ID soon in order to operate within the state.
According to Meyer Lucas Real Estate’s president and a realtor, Holly Meyer Lucas, there was an immediate reaction after the new tax bill was approved. Lucas who is based in Jupiter added that there was an extreme interest among people who are planning to move to the southern part of Florida because of the state income tax alone.
She revealed that she currently has 12 buyers seriously considering relocation to Florida so that they don’t have to pay for state income tax.
Based on the previous federal tax plan, there is full deduction awarded to local as well as state taxes but with the new tax plan the deduction has a cap which is set at $10,000.
Ameriprise’s managing director, Eric Cornall, said that they are offering holistic financial planning services. Many of his clients have already seen the difference.
Cornall said that many of his clients currently residing in California and New York where the state taxes are higher have been doubtful about moving to Florida. The new tax plan made them reconsider the move which is an immediate reaction.
Lucas added that she finds it interesting that there are more buyers based in California compared to those located in the northeast. They are not really bothered about the fact that they will no longer travel Interstate 95 but rather Highway 101.
Lucas explained that majority of their inquiries are for country clubs situated in the west. They are also expecting the entrance of business as many are already applying for their FL tax ID in order to do business in the state.