A year after the passage of the Tax Cuts and Jobs Act, residents of high-tax states like New York are seeking shelter from the storm in The Sunshine State.
Florida real estate executive Daniel de la Vega has been busy courting high-end buyers with the appeal of his state's low-tax real estate market. “We’ve kind of doubled down on the Northeast because of the tax incentives,” de la Vega, tells Bloomberg. CEO of Douglas Elliman Real Estate in Florida, jay Phillip Parker, says TCJA was a "trigger" for wealthy Americans thinking of moving to Florida. “If you’re looking at an ultra-high net worth individual or a very high income employee, if they can make the move, there are real benefits." Luxury home sale prices in Florida grew an average 5 percent in Q3 2018, per Redfin data.
The tax law limits deductions for state and local taxes, including property tax, to $10,000. Under the new rules, a New Yorker with $10 million in ordinary income and a $10 million home would have saved $1,173,278 in total taxes by relocating to Florida on Jan. 1, 2018, when the law took effect. That’s an increase of $431,682, or 58 percent, from 2017, according to the Tax Institute at H&R Block.
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