SHORT SALES, FORECLOSURES, ASSESSMENTS AND YOUR 2008 TAXES.

If you purchase a property in a foreclosure, your actual purchase price does not reflect the just (market) value used for determining your taxes. Florida law requires our office to use the reasonable market price of a sale of similar homes in your neighborhood (or a similar area) sold under normal financial conditions to determine the assessment -- and that disqualifies the use of foreclosure-related sales. As for short sales, Lori believes they now reflect the market and -- based upon an October 2008 advisory opinion from the Florida Department of Revenue (DOR) -- we are generally treating all 2008 short sales as qualified sales for 2009 assessment purposes. Regardless of your 2008 purchase price, assessments in Florida are done a year in arrears. This means your 2008 assessment is based on the sales in your neighborhood (excluding foreclosures, short sales, and non-arm's length transactions) between January 2, 2007 and January 1, 2008.

source: bcpa.net

Fort Lauderdale Real Estate Blog & Homes For Sale
Rory Vanucchi
RoryVanucchi@gmail.com