Thinking about renting your home for a little extra income? You may want to think again. If you have Homestead Exemption on your primary residence and you rent your property, you may be committing Homestead Exemption Fraud.
Miami-Dade County Property Appraiser Pedro J. Garcia encourages property owners who are receiving Homestead Exemptions on their primary residence to stay informed, and avoid losing their Homestead exemptions and incur higher taxes and penalties.
Property owners who receive Homestead Exemption on their primary residence and rent out their homes directly, or through homesharing or collaborative consumption companies such as AirBNB, may lose their Homestead Exemption, and also may have to pay back taxes with a 50 percent penalty and 15 percent interest rate.
“Renting your home may be considered fraud, if you are claiming Homestead Exemption. Homesharing is becoming very popular but may cause you to lose your exemption and incur considerable penalties, plus an increase in your taxes,” Garcia said.
If property owners have any questions they may call the Miami-Dade County Property Appraiser’s Office at 305-375-4712.
