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Old 01-26-2014, 08:05 AM
 
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RexLan - what rental tax are you referring to?
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Old 01-26-2014, 08:35 AM
 
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Quote:
Originally Posted by SJNE17 View Post
RexLan - what rental tax are you referring to?
I was curious also so I did some research this morning

Sales tax must be collected on any seasonal rental less than 6 months in Charlotte county the rate is 7%, in addition there may be additional tourism taxes.

What is taxable?
Here is the issue. It is not simply the base rent that is taxable. According to the DOR, the TOTAL amount charged to the seasonal renter is taxable. Many seasonal rental agreements state the rent amount and also have a cleaning charge. This cleaning charge is taxable and it is the most commonly overlooked tax by the property manager. While the cleaning charge is the most commonly overlooked and incorrectly untaxed charge, it is only the beginning of the items which must be taxed.
The List
The following are some of the charges the DOR has stated are taxable, but it is not an all inclusive list. You may have other charges which also could be considered by the DOR as taxable. If in doubt, err on the safe side and charge the tax.
1. The Base Rent: This is the most obvious charge and is not the problem.
2. Electricity: In many but not all seasonal rentals, the electric is included in the rent, especially in weekly rentals. Sometimes though, the tenant does pay the electric in full or an amount over and above a particular set amount by the landlord. Any amount paid by the tenant for electricity is taxable.
3. Cleaning: This is the real problem area. Many property managers are not aware that this is taxable and simply add the cleaning charge to the bill. The DOR is fully aware of the lack of knowledge of the property managers, and this is the most common tax that has not been collected.
4. Parking: Some condominiums that allow seasonal rentals charge additional vehicle fees or parking fees, and these are taxable.
5. Miscellaneous charges: Garbage Pick-up, Life Guard, Security, Furniture rental, Club House use. If these amounts are extra, and the tenant must pay for them, the amounts are taxable.
Other potentially taxable amounts:
1. Application fee: If an application fee is required, this fee may also be subject to the tax. 2. Condo Approval Fee: The law is unclear, and this may be taxable.
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Old 01-26-2014, 08:48 AM
 
Location: sittin happy in the sun :-)
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correct, if declared properly then people should charge (or pay out of the income) the sales/rental tax

oddly enough many people 'loan' their houses to (very) distant 'family' who pay no rent but send a donation................. !!!!
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Old 01-26-2014, 09:00 AM
 
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Originally Posted by mr&mrssunshine View Post
correct, if declared properly then people should charge (or pay out of the income) the sales/rental tax

oddly enough many people 'loan' their houses to (very) distant 'family' who pay no rent but send a donation................. !!!!
That is odd!

Gary
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Old 01-26-2014, 09:24 AM
 
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interesting. that's news to me, thanks for the info. 7% tax, in addition to the schedule e hit and property mgmt fees, is a meaningful economic left jab followed by a couple swift right hooks!

basically a hotel tax. i get it, am familiar with the concept, and if it helps pay for things that are needed to keep the community to the standards it is, then so be it.

i look at it this way: we've been looking all over the place in florida for a 2nd home, and the cost of installing and maintaining a sea/canal wall (which is covered by the city of punta gorda via prop taxes, etc.) is staggering. 7% is a drop in bucket, relatively speaking.

that said, it still stinks!

i presume most legit prop mgrs are required to report such things to the local tax man if they 1099 the income to owners?
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Old 01-26-2014, 11:45 AM
 
1,917 posts, read 2,614,356 times
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Quote:
Originally Posted by SJNE17 View Post
interesting. that's news to me, thanks for the info. 7% tax, in addition to the schedule e hit and property mgmt fees, is a meaningful economic left jab followed by a couple swift right hooks!

basically a hotel tax. i get it, am familiar with the concept, and if it helps pay for things that are needed to keep the community to the standards it is, then so be it.

i look at it this way: we've been looking all over the place in florida for a 2nd home, and the cost of installing and maintaining a sea/canal wall (which is covered by the city of punta gorda via prop taxes, etc.) is staggering. 7% is a drop in bucket, relatively speaking.

that said, it still stinks!

i presume most legit prop mgrs are required to report such things to the local tax man if they 1099 the income to owners?
It was news to me also and it's probably worse than that I'm sure the county has their own tax also.


Gary
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Old 01-26-2014, 11:52 AM
 
Location: SW Florida
14,832 posts, read 11,975,005 times
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Quote:
Originally Posted by MartyGras View Post
Good luck with your search, like Sea Ray Mark we are also in our mid 50's and purchased in Punta Gorda in March last year with the idea of a 5 year plan. Unlike Sea Ray Mark I am currently down here so I did not shovel snow today.
If you are going to buy I believe now is still a good time inventory is not very high and prices are rising.

I would doubt that you could rent the house and cover all of the expenses as had been previously stated but you could probably put a pretty good dent in it.

It's a funny thing we started out with a 5 year plan and it will probably be 3 or less, we will not be retiring but
Our jobs allow us to relocate without and reduction of income then add it no state income tax, taxation of retirement income and low property taxes I wish we could do it tomorrow.

Gary
Wow, that sounds great to me! The best of all worlds, IMO. Then you can retire if/when you want to..
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Old 01-26-2014, 11:52 AM
 
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We bought a home and rented it out. We are not retiring for several years and saw that home prices were going up. We are covering the monthly expenses, with the exception of replacing air conditioner or major things, but here is the deal. We bought a nice home, but less expensive and not on a canal - around $120,00. We are doing annual rentals. This means we do not furnish our home and are renting to locals who live and work in the area. No hotel taxes or whatever they are called involved. We cannot use our home for vacation. But it will be there when we retire. Local people are not going to pay the rent that is required for an expensive home. Renters pay their own utilities. We hired a company to take care of it for us. When we finally retire and move there, we may sell both homes (rental and the one we live in now) and buy a larger home. Or maybe not as our rental home is nice. But we'll worry about that later.
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Old 01-26-2014, 03:21 PM
 
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For rentals 6 months or less, there is a state Tourist Development Tax of 5% in addition to county sales tax. This link for Sarasota county explains it. In Sarasota county the sales tax is 7%, so overall tax is 12% in that county. Each FL county has their own sales tax rate.

Link: http://www.sarasotataxcollector.com/...e.htm#WhatIsIt
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Old 01-26-2014, 03:38 PM
 
747 posts, read 1,005,794 times
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Well tickle my 1040!

Thanks folks.

Interesting info I wasn't alerted to previously.

So call it minimum 22% lopped off the gross (plus broker fee, if any--do they typically charge the owner or the renter down there for seasonal rentals?), in addition to one's home state (non-FL) and fed income tax on the net.

Conclusion: NO WONDER Y'ALL DRINK AND FISH SO MUCH!!!!

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