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Frequently Asked Questions on
Florida Rental Property Income Taxes
My management company has been reporting and paying Sales & Use Tax and Tourist Development Tax on the bookings that they put in my Florida property. I have been told that I should report and pay the taxes on income that I received directly from my guests - is this true?
Yes, all income generated from the US property must be reported to the Florida Department of Revenue and Tax Collector's Office in the county where your property is located. There are significant penalties and interest charges applied if you do not report and pay the state and local tax on this income.
Generally, your management company will include owner income on their monthly reporting to the State and County. They will pay the taxes on your behalf and then bill you through your monthly management statement. You should advise your management company of any owner income at the end of the month so that they have sufficient time to prepare the filings. The income and taxes must be reported and paid by the 20th of the month following the month of receipt of income.
If your management company does not handle the filings then you must prepare the monthly filings and pay the taxes directly.
If you have been receiving income which has not been reported to the State or Count then you may be able to report and pay the taxes by submitting a voluntary disclosure to each authority. As long as the income is reported and the taxes paid BEFORE you are audited then late filing penalties and interest are greatly reduced.
Rental Property Income Taxes can be confusing and rather complex. If you have questions or require further assistance on this topic please call me at 407-361-4064.