What is the difference between real and personal property?

In Florida, real and personal property are both subject to property taxes. However, the two types of property have different definitions and characteristics, and are treated differently by the law. Real property or “real estate” is defined as land, buildings, and anything that is permanently attached to the land or buildings. This includes both physical structures, such as houses, and intangible interests, such as property rights and easements. In Florida, real property is subject to Ad Valorem taxes, which are based on the assessed value of the property and are the primary source of income for local governments. Personal property or “personal belongings” is defined as items which are not permanently attached to the land or buildings. This includes items such as furniture, cars, boats, and jewelry. While real property is subject to Ad Valorem taxes, Personal property is subject to tangible taxes, which are based on the age of the item and the taxing district. In addition to the differences in how each type of property is taxed, there are other important differences. For instance, real property is considered an asset which provides ongoing income or value, while personal property is viewed as an expense that diminishes in value over time. Real property typically has a higher value than personal property, which may also factor into the taxation of the two types of property.

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What is the difference between real and personal property?

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