We have plenty of H1N1 vaccine in Florida now, but mortgage modifications are only proceeding at 7% completion as of December. With nearly 3 million homes threatened with foreclosure last year and another record projected for this year, rentals become a homemade dose of wealthcare reform. However, the elixir may render homestead exemption abandoned.
Homestead exemption is powerful in Florida. It is what keeps O. J. Simpson from losing his house, and what could keep a roof over Tiger Woods’ head if he loses too many more endorsements. People flock to Florida for the mild weather and the hearty homestead.
How many closets constitute a homestead? In a recent case on Amelia Island, a homeowner put his clothes and personal effects into two locked closets while he rented out the rest of his house. After all, he did not rent out his “entire dwelling” as stipulated in the Florida rental statute. Those two closets were not big enough to hold his homestead.
Houses used to be built without closets because of the extra tax expense of having them. People used wardrobes and armoires (before they put TV’s in them) for their clothes. Now closets may be the very thing for keeping your homestead, but you need at least more than two to claim exemption on a rental.
Homestead exemption abandonment has been decided on a case-by-case basis, but property appraisers are going to be more aggressive in seeking abandoned homesteads. If you intend to maintain your homestead exemption, you will have to maintain your intent to reside there, with stronger support than two closets of stuff.
