If you don't change residences you will be paying tax on $225K ($250K -
$25K) and $450K values -- ie, taxes on $675K values. If you move your
homestead exemption you will be paying taxes on values of $400K and $425K
($450K-$25K) -- ie, $825K values. Your decision hinges on the changes in
value you expect for the new house between now and the time you sell the old
one -- the time when your new home value is constrained by the SOH law.
Since the current Florida housing market is almost flat, it looks to me like
your least expensive choice is to keep the homestead on the old house and
enjoy its 10 years of SOH protection. Two other factors which may affect
your calculation is any tax rate differences between the two locations, and
the ratio between assessed valuation for tax purposes and possible sales
prices, but from what you've said I don't think these will change the
outcome of the calculations.

"miamicuse" wrote in message
...
I have a home with I bought in 1996 and it's currently assessed at about
250K but the market value should be around 400K. Florida has this SOH
(Save
Our Home) rule that prohibits a home from raising more than 3% a year in
assessed value. Earlier this year I bought another home at 450K so I know
next year it will be taxed at 450K. Both homes are in south Florida one
in
Broward County and one in Miami-Dade.

I am remodeling the new home now and it will be another six months before
it
will be ready to move in. Then I will plan to sell the current home but
with the current market trend it may be hard to sell.

My question is should I keep the current home for homestead exemption now
even though the new home will be taxed at it's full sale price because if
I
apply for Homestead for the new home, the existing home tax will suddenly
jump to 400K? So it is better to not change my current exemption until I
sold the current home? Do I have my logic right?

Thanks,

MC