@Mary Joe@Mayank S. FL does not have state income tax, so generally no. Unless there is a personal property or use tax provision that I am unaware of.
All states have different filing requirements. Some give you a gross income threshold, others look at net income, and yet others require you file just for owning rental property in their state, regardless of the property's performance.
To understand state tax laws, you have to spend a few hours researching the code. Turbo Tax does a poor job of this, and generally investors don't know where to start, hence the need for a CPA.
@Mary Joe@Mayank S. FL does not have state income tax, so generally no. Unless there is a personal property or use tax provision that I am unaware of.
All states have different filing requirements. Some give you a gross income threshold, others look at net income, and yet others require you file just for owning rental property in their state, regardless of the property's performance.
To understand state tax laws, you have to spend a few hours researching the code. Turbo Tax does a poor job of this, and generally investors don't know where to start, hence the need for a CPA.
Am starting my FL return now, very interesting, Below is what the tax software says, they BOLD "with assets", does anyone know what assets they are talking about? Like stove, fridge microwave in my FL condo ?
<quote>
Based on what we know from your federal return, we see that you own a business and/or have a rental property. We'll help you prepare a Florida Tangible Property Tax Return (DR-405) if:
- You own a business or have a rental property with assets (other than vehicles); and
- Your assets are located in Florida
If you meet the above criteria, select Continue to prepare a Florida Tangible Property Tax Return. Note that this return cannot be e-filed.
If, however, you do not meet the criteria and do not need to file a Florida return, select Skip State to skip preparing a Florida return or select Choose Another State if you need to file another state return.
Am starting my FL return now, very interesting, Below is what the tax software says, they BOLD "with assets", does anyone know what assets they are talking about? Like stove, fridge microwave in my FL condo ?
<quote>
Based on what we know from your federal return, we see that you own a business and/or have a rental property. We'll help you prepare a Florida Tangible Property Tax Return (DR-405) if:
- You own a business or have a rental property with assets (other than vehicles); and
- Your assets are located in Florida
If you meet the above criteria, select Continue to prepare a Florida Tangible Property Tax Return. Note that this return cannot be e-filed.
If, however, you do not meet the criteria and do not need to file a Florida return, select Skip State to skip preparing a Florida return or select Choose Another State if you need to file another state return.
I am not a CPA nor do I do taxes.
In reference to your remark about DR-405, this is directly from the Florida Dept of Revenue web site.
Have you tried calling the Florida Dept of Rev to see if you can get someone to give some guidance?
Also, I too used TurboTax and switched to HR Block two years ago specifically for the purpose of cost. HR Block offered the state (I have to file MD since I have rental property in that state) with the federal and was much cheaper.
From my experience, I would caution you on the questions and how they are answered since the software can lead you down a rabbit hole. Like you, I answered a question and the "software" decided I needed to do something that was actually incorrect. I didn't know it at the time, filed my taxes, and the next year realized it was incorrect. Yes a whole year went by and I caught it due to another correction that needed to occur from an unrelated entry.
I had to amend my taxes to get it corrected but since I was amending for something else I just fixed everything at the same time.
You may want to consult a CPA. Honestly, the money is well worth it when you find a good capable CPA that knows about investors and all the nuances of RE. And when you do, stick with that person.
No FL tax return......only if you have business "equipment"....you don't. I have equipment and have to pay thousands each year in tangible property taxes. You don't.
you don't need to file a FL return on rental property, unless you have a condo or vacation rental and have personal property like furniture appliances ect. Over 25k, it's called the tangible personal property tax. Some county tax collectors make you file for the 25k exemption on any rental, because they don't know if it's a vrbo with a bunch of furniture, but every county is different on what they may require. Just google tax collector and the county where you rental is in FL and call their office and ask. It's just a one page simple form if they require it no need to pay turbo tax to spit it out.
If this is an annual rental, no return required here. If it is seasonal and rental terms are less than 6 months you are required to file with the Florida Dept of Revenue for sales tax. Don't get caught on that--I have seen some guys get his with horrendous penalties. As far as income tax, Florida has no income tax and that is one reason that is bolstering our influx of foreigners (yankees, etc):) We do have an intangible tax requirement and if you don't have over 25K in equipment that is not applicable.