Two Homes at Once--Questions

[Fuzzyjourneyfan]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.

[Malsua]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.

I don't know what Nevada requires for residency. I know that NY/NJ "claim" you if you live there for more than 6 months. Which is why people that snowbird in FL and claim a Florida Residence have to document that they spend 6 months and a day out of either state otherwise New York and/or NJ get their pound of flesh. Not as important for retirees though.

As far as I know however, Nevada doesn't have a state income tax. Florida doesn't either. This sorta means that the rules are different and neither one wants a piece of you. You claim to live wherever you want.

That said, they probably DO have rules on how long you can live in the state and run out of state plates, I think it's 30 days if you do move your residence. Seems to me that you'll need to have your car and your license in FL and hers in Nevada. In practice, there are always millions of out of state plates in Florida, so the chance of anyone getting worked up about it are pretty low.

I have a little bit different problem in that we're not moved yet but plan to in 21. This affects my wife's medical because we're not full time Floridians until we get the NJ house sold. I can wing it with my employer a little easier than her Medicare plan. Once we're there full time, it's easy, it's just the transition that's more difficult since we're going back and forth for a bit.

[Stu from NYC]

Where will you be keeping each car?

I think I would talk to an automobile insurance rep.

[JohnN]

I've been in this exact situation though in another state. I registered both in Florida, along with the homestead exemption and my IRS taxes - no state tax in FLA. No problem at all.

[smurphy]

Where will you be keeping each car?

I think I would talk to an automobile insurance rep.
We split our time between NY and FL. We used to drive but now we fly.

Our cars remain in NY but we bought a car which remains in FL. Registered and plated in FL. Of course it is the only car I own with heated seats. You do not need a FL drivers license to register a car in FL. It's on a different ins company because my home company does not sell in FL.

Check with your ins company, if you are away from FL for an extended time, like 6+ months and the car is garaged, you can put your ins into vacation/storage mode.

Most states require you to re-register a car if it is in a new state longer than 30 days, probably for tax purposes. Nobody will probably call you out on that unless your in an accident or you really **** some off.

[LuvtheVillages]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.


If you check with your insurance agent, they will tell you that the car should be registered and insured in the state where it is garaged.

[shut the front door]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.

One issue that I had was that both spouses that are listed on the property deed need to have FL drivers licenses. If only 1 does, they give you a partial homestead exemption. We were able to get around this when I told the clerk that my spouse needs to keep DL in our home state. She said, "truck driver"? Sure. It worked and we were able to get the full homestead. Mind you, we both live here full time and don't have a home elsewhere so I'm not cheating the system.

[rjm1cc]

I think the car insurance will relate to where the car is garaged the most.

[tophcfa]

As already mentioned, your car should be insured and registered in the state were it is primarily garaged. The key is insurance. Either state will be happy to take your registration fees. You just don’t want to risk having an insurance claim denied because you misrepresented where your vehicle is garaged for the majority of the time. We have two vehicles registered and insured up north and one in Florida. Our Florida car would be worthless up north in the winter, but I do sometimes drive it north In May and take it back to Florida in September so I can enjoy the convertible up north during the summer.

[Kilmacowen]

Getting back to OP question, if you want to get homestead tax reduction you will have to establish Florida residency. That involves registering to vote here, changing your drivers license and in some cases changing your medical insurance. Bank account and IRS address info to prove that you are a permanent resident.

[John41]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.

Our primary home is in The Villages but we also have a vacation lakehouse in Georgia. When we insured the car the insurance form asked where the cars were primarily kept (Florida). For y the boat (Georgia)

[BillY41]

Google Homesteading in FL. You will get the necessary information.

[Footer]

The day we closed on our house we went to the Annex/Library on Powell and got a new driver's license, registered to vote, applied for our homestead exemption, and registered our car. They go out and inspect the car. We also got a library card. One stop shop.

We had gotten insurance for car and house from The Villages Insurance.

Our Wisconsin house and car are still insured in Wisconsin , which is much cheaper than Florida. The Florida car goes back and forth. Wisconsin car stays in Wisconsin.

To get the homestead exemption we had to give up our Wisconsin exemption, which allowed us to take the state lottery credit on our property taxes. No other benefit.
We needed a letter from our county treasurer to prove we made the change before Florida gave us the exemption.

The 6 month rule does not apply to the homestead exemption, just the state income tax. However, if we work in Wisconsin when we are there we still have to pay Wisconsin state income tax.

[mcwood4d]

Another point the OP may want to consider is sales tax on the car. If the owner has had a vehicle less than 2 years there could be some sales tax implications when establishing FL title. I encourage you to contact the county for specifics if you think this may apply to you.

[akerwin1909]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.
I was told yesterday that I have to have a Florida drivers license before homestead can be done here. Has to be done before Jan.
1 of the year you plan to homestead. There’s a whole list of other requirement as well. Tax collectors office has all the info.
You’ll love it here, so worth the effort!

[Larchap49]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.

Make sure both cars are in both names and then register them both in FL. Be c ause of the length of time you will spend in FL. you are a legal resident.

[Goldenrule480]

I just had the same situation last week as I moved here in November. I registered the car that was here in Florida and will leave the car garaged in Illinois on that state. I have spectate insurance policies for each car from each state. I could not register the Illinois car here even if I wanted to because they have to physically look and certify the mileage. Also, insurance here is almost double.

[bobnyce]

Beware the IRS! If you establish residency in Florida prior to selling in Nevada you could end up paying a full capital gain tax on your Nevada residence. I believe IRS requires your home to be your primary residence at time of sale and for at least 2 of the last 5 years or your gain, if any, will be taxed.

So, if you are planning to establish residence in FL to gain the homestead exemption be very careful and get solid tax advice BEFORE you do it. My two cents.

[bobnyce]

The day we closed on our house we went to the Annex/Library on Powell and got a new driver's license, registered to vote, applied for our homestead exemption, and registered our car. They go out and inspect the car. We also got a library card. One stop shop.

We had gotten insurance for car and house from The Villages Insurance.

Our Wisconsin house and car are still insured in Wisconsin , which is much cheaper than Florida. The Florida car goes back and forth. Wisconsin car stays in Wisconsin.

To get the homestead exemption we had to give up our Wisconsin exemption, which allowed us to take the state lottery credit on our property taxes. No other benefit.
We needed a letter from our county treasurer to prove we made the change before Florida gave us the exemption.

The 6 month rule does not apply to the homestead exemption, just the state income tax. However, if we work in Wisconsin when we are there we still have to pay Wisconsin state income tax.

Be aware of the IRS rules regarding residency for your primary residence! Very important to understand these rules. We waited until we sold our PA home before establishing residency in Florida so we didn't affect the sale of our primary home in PA. The small advantage of FL residency may be well overshadowed by the tax impact when or if you sell your home in Wisconsin.

[dewilson58]

Make sure both cars are in both names and then register them both in FL. Be c ause of the length of time you will spend in FL. you are a legal resident.
Why???

[bobnyce]

Make sure both cars are in both names and then register them both in FL. Be c ause of the length of time you will spend in FL. you are a legal resident.

It is my understanding that if you register a car in both names, any accident will draw both parties as defendants. We have always registered cars in only one name to at least avoid lawsuits naming us both.

That is especially true in Florida. Have you seen the TV ads?

[bobnyce]

Why???
The IRS grants exemptions on the gain from the sale of a "primary" residence if occupied the required number of years and you can prove it was your primary residence.

If you change residency, prior to selling your "primary" residence, your new address becomes your primary residence and you lose the exemption.

Speak to a good tax advisor prior to making any such decision.

[bobnyce]

PS: there are ways to avoid a challenge by the IRS regarding where your primary residence is located. But, most require that you are a registered voter, have a driver's license in the state of residence, have your cars registered there and prove you had no intention of changing residency while owning a second home in another location. However, the IRS will look to see where you spent your time. How can they do that? They check your credit cards of course and you need to counter that with the arguments listed above.

[dewilson58]

If you change residency, prior to selling your "primary" residence, your new address becomes your primary residence and you lose the exemption.

.
100% wrong. Absolutely wrong.

There is a 5 year look-back.

[tophcfa]

If you have a new car with all the high tech gps and computer gadgetry in it, your whereabouts can be constantly tracked. That data can then be sold to third parties such as insurance companies to be used as a basis to deny a claim for misrepresentation of primary residency. They can also access how many miles you drive each year, how fast you drive, and if you are a hard breaker approaching a stop sign. All of this data can be used when underwriting to access a corresponding risk premium to your policy. Oh, and when the light goes on in your car indicating it needs an oil change, your cell phone will start lighting up with texts offering oil change specials. As we adapt to technology, we are all becoming nothing but living and breathing data points than can be sold to third parties. Watch out, I think I will keep my older Vehichles for as long as possible.

[davem4616]

We had the same situation...a home in FL and one in MA. We are both from MA and bought a second home in Fort Lauderdale in 1995...in 2008 I moved my business down there for tax purposes and became a FT Florida resident, although my wife traveled with me every time I came to Florida she elected to remain a resident of MA. We had two cars, the one we kept in FL we registered in FL and I registered to vote in FL. Wife wanted to keep her MA residency for Health Insurance reasons, keep the doctors she had and she was flying up frequently during the winter for elder care support. We were still 'snowbirds'...both of us could work remotely, but also had to travel for business. Back in the 90's you could keep your out of state driver's license and get a "Florida Only" license (no more). You can only have one Homestead that gives you a tax break. There is no tax deduction for homesteading in MA, so I was able to Homestead in FL in 2008. I believe the rule at the time was that if you had a Homestead in another state that reduced your real estate tax you could not homestead in FL unless you cancelled the other. For a few years the State of MA contested why I wasn't filing a joint state tax return with my wife and they wanted verification that I was actually a Floridian...it had nothing to do with how many days I lived in either state....a copy of my FL voting records, valid drivers license, phone bill and water bill was all they needed. We had the option of filing our Federal taxes jointly or married filing separately (which one year was a huge advantage). Car insurance is something that you need to shop around for. I found State Farm to be as expensive as MA was...I now use Triple A and they cut it in half. My wife became a Floridian in 2012, and we simplified our lives by selling our MA property in 2015.

My tax attorney told me not to worry about having an out of state license or out of state plates...the borders between all the states are open

Hopes this helps

[KRM0614]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.
Insure everything car and home here ! Use progressive to bundle cars and home. I have a designer home it’s a year old it’s 460-/ yr and car for me is 420-/ 6 months
Homestead you need to do here as well but you won’t see the benefit until 2021. The 25-% tax increase is buried in the millage rate.

[KRM0614]

We just bought a house in The Villages and will be closing in January. We also own a home in Nevada. I will be living in The Villages for approximately 7 months per year until my wife retires. She will be living in our Nevada home for 9 months per year because of her job. We would like to homestead the Florida home because the taxes are more expensive there. From what I have heard, you can only homestead one home--that's fine. My question is what to do with our two cars. Should we register and insure one car in Florida and one in Nevada or can we register both in Florida even though she will be spending 9 months per year in Nevada? Florida car insurance is much cheaper, so we would like to register both cars there. We will appreciate any information that you have to share. Thanks.
Make sure your wife keeps her health insurance in Nevada because Florida health insurance won’t be accepted in any other state. They have lousy coverage unless you drink the Kool aid of village ins which is United healthcare. Get all your medical dental and vision done n Nevada. Since you have a residence in Nevada as coverage quality of care here is iffy at best

[DaveGodin]

I was told yesterday that I have to have a Florida drivers license before homestead can be done here. Has to be done before Jan.
1 of the year you plan to homestead. There’s a whole list of other requirement as well. Tax collectors office has all the info.
You’ll love it here, so worth the effort!

I got the information I needed from the villages phone book. In fact, we got almost all of our moving/residency info from the phone book. The section in the front explains documents required for a DL, auto registration, FL residency, Homestead. Best resource we found.

[davem4616]

PS: there are ways to avoid a challenge by the IRS regarding where your primary residence is located. But, most require that you are a registered voter, have a driver's license in the state of residence, have your cars registered there and prove you had no intention of changing residency while owning a second home in another location. However, the IRS will look to see where you spent your time. How can they do that? They check your credit cards of course and you need to counter that with the arguments listed above.

I agree...I was challenged 4 times and providing them with the above documents ended it...but they did it four year in a row before giving up

[dewilson58]

I agree...I was challenged 4 times and providing them with the above documents ended it...but they did it four year in a row before giving up
Why does the IRS care what state your primary is??

[rphil11ort]

one thing i can tell you that your car insurance would have to moved to a florida policy. talk to your insurance company

[dewilson58]

.My tax attorney told me not to worry about having an out of state license or out of state plates...the borders between all the states are open
Tax attorney may not understand the exposure........the risk is the insurance carrier may deny a claim.

[Curtisbwp]

I have a home in the villages and a home in Maine. I have one suv (Rav 4) and a truck (toyota tacoma) bith are registered in Fl. Maine has yearly inspections, fl has no inspection. Maine charges a yearly excerise tax, fl does not

[tophcfa]

I have a home in the villages and a home in Maine. I have one suv (Rav 4) and a truck (toyota tacoma) bith are registered in Fl. Maine has yearly inspections, fl has no inspection. Maine charges a yearly excerise tax, fl does not

Gotta love Florida for that. I have to pay about $400 per year to the state of Taxachusetts in excise tax every year for my truck, as well as go through the hassle and expense of an inspection. Not in Florida. Our BMW convertible in Florida has a perpetual "check engine" light on, the code triggering the light is the catalytic converter failure. If the car was registered in MA, it would have to be inspected annually (as well as taxed) and would fail inspection without replacing a $2,200 catalytic converter that would actually makes the car run a little bit worse. Go figure?

[DAVES]

We moved to Florida about eight years ago and were thrilled that it took us roughly one hour to deal with getting a Fla driver's license, plates, register to vote and home tax exemption.
I just tried to complete some other government paperwork, Due to xmas and or covid, it is far different. Impossible to contact anyone on the phone. Someone tells you to do it at
whatever, first of all they do not answer the phone either, you drive there and find the office is closed, You will be directed to a website. In my case the information on the website was incorrect. On line chat? I gave up after being on hold for an hour and a half.
If, you can, I would wait till Jan 2021. Oh, the wait at the post office to mail anything is about an hour.

[Garywt]

I am retired and my wife still works. I will not spend time in Florida away from her. I have done a 2 week stay but that is all. I the 22 months we have owned the house we have been there a total of about 6 weeks (plus 2 just me.). We have left everything registered in Mass. Mass does not have a homestead discount so we just pay as we go. Taxes in Florida are escrowed and run about $4800 a year which is lower than Mass taxes. Each of us needs to work out what is best.