First Time Tax Lien

[Margaret Lyon]

Hey there everyone! I’m looking into purchasing my first tax lien/certificate in the state of Florida and was wondering if anyone could provide guidance on how any profits would be taxed… im assuming this would be consider income and not capital gains but I’m unsure.

[Wayne Brooks]

@Margaret Lyon Do you understand how Tax Certificates work in FL?   All you get is the interest rate you bid, you get no possibility of owning the property, except just like everyone else you bid to buy it if it ever goes to a Tax Deed auction. It can cost easily 10 times the amount you paid for your certificate to send it to the tax deed auction, where you just get to bid against everyone else.  The majority of certificates go for less than a 1% interest rate.