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Unit 18—TAXES AFFECTING REAL ESTATE

You can expect to see three questions on the end-of-course exam and three questions on the state exam from this unit.

Learning Objectives

After successfully completing this unit, you will be able to
• distinguish among immune, exempt and partially exempt property,
• describe the various personal exemptions available to qualified owners of homestead property,
• compute the property tax on a specific parcel, given the current tax rate, assessed value, eligible exemptions and transfer of assessment limitation difference (save our homes portability) if applicable,
• list the steps involved in the tax appeal procedure,
• describe the purpose of Florida’s Green Belt Law,
• calculate the cost of a special assessment, given the conditions and amounts involved,
• describe the tax advantages of home ownership,
• explain how to determine taxable income of investment real estate, and
• distinguish between installment sales and like-kind exchange.

Key Terms

ad valoremimmune properties
assessment limitation (save our homes benefit)just value
assessed valuelike-kind exchange
capital gainsmill
community development districtsspecial assessment
debt servicetax rate
exempt propertiestaxable income
installment saletaxable value

Overview

“Two things are certain in life,” as the saying goes, “death and taxes.” This unit will describe the taxes associated with real estate, including property taxes, special assessments and income taxes. You’ll learn how to calculate property taxes and the tax exemptions available to homeowners. You’ll see how improvements to a neighborhood can be allocated among the owners by use of a special assessment. And you’ll learn how to determine the taxable income of an investment property.