Home Taxes including Capital Gains Tax & FIRPTA Witholding

Taxes

Income Tax

Form 1040NR

Filed annually to the Internal Revenue Service (IRS) due by June 15th (for most non-resident homeowners)

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Capital Gains Tax

Payable on the net gain of your property to the IRS
Defer Capital Gains Tax by using 1031 Exchange
FIRPTA Withholding (10% of gross sale price of property).

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FIRPTA (Foreign Investment in Real Property Tax Act) Witholding

Withholding of Tax on Dispositions of United States Real Property Interests

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Tangible Personal Property Tax

Tax return filed annually to the Property Appraiser’s Office (in the County where the rental property is located), due by April 1st – late filing penalties effective after this date.  Tax bills are mailed out on or before November 1st each year.  Payment is due by March 31st with discounts available for early payment.  A $25,000 exemption is available effective January 1st, 2008.

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Property / Real Estate Tax

Payable annually to the Tax Collector's Office (in the County where the property is located).  Tax bills are mailed out on or before November 1st each year.  Payment is due by March 31st with discounts available for early payment.

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Sales & Use Tax

Filed monthly to the Florida Department of Revenue (DOR), due by 1st of month; late filing penalties effective after 20th of month.

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Tourist Development Tax

Filed monthly to the Tax Collector’s Office (in the County where your property is located), due by 1st of month; late filing penalties effective after 20th of month.

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Local Business Tax (previously Occupational License)

Required by homeowners who rent their US property and receive rental payments directly. Paid annually to the Tax Collectors Office (in the County where the rental property is located).

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Hotel License

Each short term rental home must have a Florida Hotel License which is renewed annually.  The application and renewal of this license is usually handled by your management company - we recommend that you request and retain a copy in your personal files. 

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