Real Estate Taxes in the State of Florida
If you own a rental property in the Sunshine State, which Real Estate Taxes in Florida you need to pay? The following bullet list will guide our landlords through their possible tax obligations.
- Income tax: Renting property results in obvious income to the homeowner. All property owners who receive income from rent must file a US Income tax return for the year. The tax year runs for full calendar years and filing takes place on or before June 15 each year.
- Tangible Personal Property Tax: This tax will assess the value of the furniture, fixtures, and equipment located in businesses and rental property. Tax returns reporting the value of these assets must be filed to the Property Appraisers’ office by April 1st.
- Property or Real Estate Tax: Property or Real Estate Tax is payable annually. The Property Appraiser’s Office establishes the assessed value of a property and prepares the tax roll. Tax statements are normally mailed out on or before November 1st each year.
- Sales & Use Tax and Tourist Development Tax: If you rent your property for periods of less than six months, you’re required to collect and pay Sales & Use Tax and Tourist Development Tax on rental income received. Your management company or booking agent may collect and report all Sales and Use Tax and Tourist Development Tax on the rentals that they handle.
- Local Business Tax: This tax is required by homeowners who rent their US property, renewed annually to the tax collector’s office in the county where the rental property is located.
- Capital Gains Tax: This tax is payable on the net gain from the sale of a property owned for more than one year. The gain is the sale price minus the purchase price and all related costs incurred in the purchase and sale of the property.
- FIRPTA Withholding Tax: In the US, the Foreign Investment in Real Property Tax Act requires that a nonresident alien who sells an interest in US real property be subject to tax withholdings of 15% of the gross sales price. Foreign sellers may obtain a Withholding Certificate from the IRS to avoid withholding.
We hope this summary helps our buyers and sellers to understand what their real estate taxes in Florida are. Century 21 World Properties strongly recommends the use of capable accounting service to cope with these legal matters. We recommend HBI and we have done so for years with great results. To read more about this company and find additional information about the taxes listed above, please click here.