Advice for new Rental Homeowners
The following steps will ensure you are tax compliant while OAS will help by providing advice and guidance on all these matters and any concerns regarding your US investment.
ITIN (Individual Tax Identification Number) Application
All rental property owners in the US are required to have an ITIN (Individual Taxpayer Identification Number). The ITIN application is normally made at time of purchase, or shortly afterwards. We will apply for this Tax ID, as part of our overall service. We are Certified Acceptance Agents and have close links with the IRS and can ensure the ITIN application process is successful. We can accomplish this process without the necessity of sending your original passport to the IRS.
Federal Income Tax Filing
This is a mandatory requirement for non-resident homeowners who rent out their property for 14 days or more per year. The deadline for filing to the IRS is June 15th each year.
State Income Tax
Certain US States impose a State Income Tax, in addition to Federal tax filing.( Owner Accounting will assist those clients by filing their State returns).
Real Estate Tax
In the case of vacation homeowners, Real Estate refers to land, dwelling, fixtures, and any other improvement to the land. This should be paid annually to the County Tax Collector’s office by March 31st.
Sales & Use Tax
This applies to Short Term Rental Properties only. It is payable monthly to the Florida Department of Revenue and is due by the 1st of each month.
Tourist Development Tax
This applies to Short Term Rental Properties only and is payable monthly to the County Tax Collector by the 1st of each month.
Tangible Personal Property Tax
Homeowners are not liable for this tax if the total value of their furniture, fixtures and equipment is assessed at less than $25,000. However, they should apply for this exemption during their first year of ownership.
Otherwise this tax is due annually by the County Tax Collector -tax deadline March 31st
Licenses that affect Rental Homes in Florida
Short-term rental homeowners must obtain this license from the Florida Department of Business & Professional Regulation, prior to renting out the property. Generally, the application and renewal of these licenses is dealt with by your management company. This must be renewed annually via the Tallahassee Dept. of State.
Local Business Tax Receipt
Concerns homeowners who rent out their US property and receive direct rental payments via their Management Company . It applies to Short-term rentals only and the licence fee must be paid to the County Tax Collector.