Florida is where people from all over the United States and other countries come here to purchase a principal residence or second home. If you currently own a principal residence in the United States and want to buy a principal home in Florida you will want to consider the time frame you have to sell your current home to take advantage of the capital gain exclusion. The time period to sell your current home is two years after you homestead your Florida property to take advantage of the capital gain exclusion. You can claim only one exclusion every two years.
The capital gain exclusion excludes up to $250,000 gain received on the sale of a principal residence for a single taxpayer and $500,000 for a married couple. The taxpayer must have owned and lived in the property for two of the past five years from the date of sale. The occupancy does not need to be concurrent. If you do not meet this test you may be able for partial exclusion consult your accountant.
If your spouse passes away consult your accountant to take full advantage of the $500,000 exclusion.
Consult your accountant for further information on this subject.