In FLorida is property reevaluated with owner dies and property bequeathed.?

Question

If I am bequeathed a condo in FLorida, how will the yearly tax obligation be determined...on what it cost when it was originally bought or what it would cost now. This condo would be a second home.

Answer 1

For estate tax purposes the house would be revalued at the date of death. This would become your cost basis for gain or loss on sale.
The real estate tax should continue with the valuation that was used prior to the death. The value of property for real estate tax purposes is adjusted periodically by the state or county and the death should not effect this.

Answer 2

Your basis for income tax purposes (when you sell) will be the adjusted basis (fair market value) on the date that you inherit the property. (That stepped up value will be used to determine if any inheritance tax is due on the estate. Unless it's a very large estate the value will probably be less than the exemption amount so no tax will be due.)

As far as property taxes go, most jurisdictions re-value properties every year or two and typically do a step-up to market value whenever ownership changes. You'll have to contact the local taxing district to find out how they handle that locally. Those property taxes will be deductible on your return if you itemize deductions.