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Rented Mother in law suite

Author Steve Bunch
Participant 

#1 - Posted: 27 Jun 2012 18:31 
I have a single family home with a two story detached garage with a "mother in law" suite. The "main house" has always been occupied by my family and we have 9 out of the 10 indicia of homestead as defined in F.S 196.015. The mother in law suite has been rented out this year. My read of FS 196.061 is again that of the "entire" residence. The main house is 2167 sq ft and entirely and completely occupied as a permanent residence. The apartment is 500 sq ft and rented. I would say that the "entire residence is not rented and my homestead is valid. Thoughts?

Author johnbsims3
Admin 

#2 - Posted: 27 Jun 2012 19:05 - Edited by: johnbsims3 
Steve,

My opinion is that you are absolutely correct. Should there be an issue with the Property Appraiser's Office (PAO) the worst case scenarion is that they may reduce the percentage of the exemption based on the square footage of the main and garage portions (total) minus the garage. Not only does 196.061 F.S require the "entire" residence to be rented, it also states that it must be for two consecutive years for there to be an issue. Also, be advised that the new law that comes into effect July 1st, changes the word "entire" to "substantial portion". Althought the Legislature did not define "Substantial Portion", we believe that it still requires an almost 100% rental, in other words, a locked closet of filing cabinet with personal papers, or a minimal portion kept for personal property will not suffice. Whether or not this pertains to your specific issue and the portion of the building (garage) rented, may be another matter entirely. Comments?

Author johnbsims3
Admin 

#3 - Posted: 27 Jun 2012 19:33 

Author Steve Bunch
Participant 

#4 - Posted: 27 Jun 2012 19:52 
so does the new law come into effect as of July 1st for 2012 or as of July 1st for valuations that take place starting 01/01/2013?

Author johnbsims3
Admin 

#5 - Posted: 27 Jun 2012 19:53 
What is a Granny Flat exemption and how do I claim it?

This benefit allows a homeowner who adds living quarters to their home for a parent or grandparent, to exempt the cost of that new construction from the assessed value of a home. To qualify, the parent or grandparent must be 62 or older as of January 1 in the year the assessment is being done, and it must be their permanent home. Only construction completed after January 7, 2003 qualifies for the reduction.

Granny Flat Assessment Reduction

Under the 'Assessment Reduction of New Construction for Parent(s) or Grandparent(s) Living Quarters,' commonly called the 'Granny Flat' Exemption, homesteaded property owners who add living quarters for a parent or grandparent can apply to have all or part of the value of this new construction deducted from the assessment.

General requirements and limitations are as follows:

The property must be homesteaded by the property owner.
The parent or grandparent must be 62 or older as of January 1.
The 'Granny Flat' must be the permanent residence of the parent or grandparent.
Only construction or reconstruction completed after January 7, 2003 qualifies.
Construction or reconstruction must be properly permitted.
The maximum reduction allowable is 20% of the total assessed value as improved.

Author johnbsims3
Admin 

#6 - Posted: 27 Jun 2012 19:54 
1/1/2013

Questions and Answers Florida Homestead Services -- Florida Homestead Exemption Act MiniBB / Questions and Answers /
Rented Mother in law suite
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