Step 4. Determine the Shared Exemption% (SE%) based on the tenancy of ownership.

Why? By statute (s.196.031 FS.), the various tenancies are treated differently in regards to calculating the amount of homestead exemption to which an owner is entitled. For the purposes of calculating the amount of exemption, if the tenancy of ownership is by the entireties or jointly with right of survivorship, the Shared Exemption % is 100%, even if only one of the owners resides on the property. If the tenancy is in common, the Shared Exemption % is proportionate to the number of owners (e.g. 2 owners = 50% each; 3 owners = 33.3% each; etc.) or the percentage ownership interest reflected in the deed.

For Example, (A) if only one owner of a property held as tenants by the entireties resides on an eligible residential property, that person, if qualified, is entitled to a homestead exemption of up to $25,000. In contrast, (B) if only one owner of a property held as tenants in common with one other owner resides on an eligible residential property, the homestead exemption is based on the value of the owner's proportionate interest in the property, up to $25,000. The difference between examples A and B is that A can receive the full exemption if the property is assessed for at least $25,000. B can receive the full exemption if the property is assessed for at least $50,000.

Legal Authority and Reference

Florida Administrative Code, Rule 12D-7.012

(4)(a) This paragraph shall apply where property is held by the entireties or jointly with a right of survivorship.
1. Provided no other co-owner resides on the property, a resident co-owner of such an estate, if otherwise qualified, may receive the entire exemption.
2. Where another co-owner resides on the property, in the same residential unit, the resident co-owners of such an estate, if otherwise qualified, must share the exemption in proportion to their ownership interests.
(b) Where property is held jointly as a tenancy in common, and each co-owner makes their residence in a separate family unit and residential unit on such property, each resident co-owner of such an estate, if otherwise qualified, may receive the exemption in the amount of the assessed value of his interest, up to $25,000. No tenant in common shall receive the homestead exemption in excess of the assessed valuation of the proportionate interest of the person claiming the exemption. See also 196.031(1) Florida Statutes.

Practice

• G. What is the shared exemption percentage (SE%) of one owner as a joint tenant with the right of survivorship?                     %.

• H. A property is owned by four persons as tenants-in-common: Don owns 30%, Mike owns 25%, Jim owns 25%, and Joe owns 20%. There are three homes on the property and Mike, Jim and Joe each reside in respective homes. What is the total SE% for the eligible owners?                     %.

What To Do

Go to step 5.