All Forum Posts by: Fernando Imperatori

Hi everyone,

I am looking for help to make a private purchase of an aptartment in Atlanta GA with my company that is FL based as an investment property.

This property won't be listed since the seller and myself have come to a arrangement, looking for legal help to make this deal happen.

Any replies will be appreciated.

Regards, Fernando

The sales tax on product and services is not the issue here.

I’m taking about paying sales taxes on property taxes for example. The government is treating money collected to pay sales taxes as income and then we’re not getting those sales taxes back when paying the property taxes. Taxes on taxes.

It is my understanding that sales taxes should be payed once only on net rental income which is the service I’m providing.

Shouldn’t be paying sales taxes on CAI fees and other expenses subject to sales tax as well which I’m not going to go into right now.

On my situation, property tax and cai fees are 35% of my rental income. I could offer a significant discount on rent to my tenants because this 35% is not really net income or profit but still an expense because of the sales tax.

The argument of the state “making up for not collecting state tax” is not really a logical explanation because is not really true.

So why are we paying taxes on taxes?

Any accountant/tax lawyer thoughts on this?

Thanks!

Hello, hope you are healthy and safe.

I'm very aware of section (s.) 212.02(12), Florida Statutes (F.S.) which states ALL money collected from a tenant in a Commercial Property is considered rent and as such it's subjected to Sales Tax (5.5% + 1% Miami-Dade).

I have a BIG objection with this statue. In one example, part of the money collected is used for paying Ad Valorem Tax annually. This means I'm paying taxes on taxes. Also Condominium Associations are tax exempt, so I'm paying taxes on untaxed money as well. 

How does this make any sense?

Most accountants I have spoken about this say that I shouldn't worry since the tax money that I'm collecting from a tenant to pay the government doesn't affect my bottom line since it's just taxes. 

BUT it does affect my bottom line since I could offer a more competitive rent price to my current and prospective tenats if I they paid taxes on actual rent profit only (instead of money that is being somehow "held on escrow" by the Landlord, i.e. Property Tax , CAI fees).

Does this make any sense? It looks like to me that I'm paying taxes on taxes and taxes on legally untaxed money.

I've spoken to some Landlords that only charge sales tax on the actual "rent profit" and don't tax the whole rental amount received by a tenant. I've yet to see their books to confirm, but is this an option? Would this method of paying tax would pass a Local Authority and/or IRS audit?

Any leads or comments on this issue are greatly appreciated. 

Hello, A group of people are looking to buy a 2 family home in Bedstuy - Crown Heights areas of Brooklyn around the $800k mark. 3 to 4 Properties that are not fully renovated are ideal but open to all options. We have a local RE broker working with us but also trying to find more leads to off-the-market properties to expand our search. Please contact me for more info. Regards, Fernando

Hello! A good friend suggested this website and I'm here to try it out. My company currently hold 20 commercial properties in Miami FL and we are always looking to buy more. We also look for tenants for this commercial properties and also we look for property managers who have knowledge of the Hialeah area and market.

I'm a NY based entrepreneur and been investing in RE for 15 years, I also hold a FL Real Estate Sales Associate license and i'm employed through a broker in Doral, FL. 

Looking forward to make some good contacts here and hopefully some good deals too! Fernando