Tax considerations
Depreciation, 1031, and Florida residency.
Work with your CPA on hold period strategy.
Educational overview only — not tax advice. Depreciation, cost segregation, 1031 exchanges, and entity structuring affect after-tax returns on Florida investment property. Passive activity rules may limit loss deductions for high-income W-2 earners.
1031 timing
Identify replacement property early — 45-day identification and 180-day closing windows move quickly in competitive South Florida inventory. Engage a qualified intermediary before you list the relinquished asset.
Florida transfer taxes
Doc stamp taxes apply on deed transfers at sale — budget transfer costs in exit models alongside broker commission and mortgage payoff.
Cost segregation
Cost segregation studies may accelerate depreciation on acquired or renovated assets — consult your CPA on feasibility and audit risk before you close. Studies require engineering support on larger value-add projects.
Entity selection
LLC versus LP versus trust ownership affects lender requirements, liability shielding, and estate planning. Align entity structure with mortgage counsel and tax advisor before you wire earnest money.
No — homestead exemption and Save Our Homes cap apply to owner-occupied primary residences only.