what is tangible personal propery tax and how does it pertain to a residential home rental in florida
Tangible is able to be touched or having physical existence as opposed to intangible that is not actually a physical item. For example, a stock or bond is an intangible (even though there may be a piece of paper) whereas furniture or equipment is tangible.
Personal property is that which is not real property. Real property is land and the items attached to the land such as buildings.
So personal property is all of the stuff like furniture, equipment and such.
Each year the value of the personal property used in business or rental is reported (what was in service January 1 is reported by April 1) to the property appraiser of the county and a small percentage of the value is paid as tax.
"Property owners who lease, lend or rent property must also file."
The form and instructions are at http://dor.myflorida.com/dor/property/forms/current/dr405a.pdf
For more details see http://www.coj.net/departments/property-appraiser/tangible-personal-property-faq.aspx
"On Jan. 29, 2008, voters approved Amendment One - a property tax reform package that includes a $25,000 exemption for Tangible Personal Property. Businesses must file a tangible personal property return to qualify for the exemption. Businesses with assets under $25,000 must file an initial return, and will not be required to file again until their assets exceed the $25,000 threshold."
For most home rentals in Florida only one return will need to be filed in order to qualify for the exemption not to file because the total value of tangible personal property is less than $25,000.
Please ask if you need clarification.
What if u are not renting any furniture
I am not a business, I am someone who is renting out my home in florida becuase I can't sell it becuase I am underwater on it
How much is the tax for that if you do have appliances?
what if the appliacnes were already there when you bought the house?
Hello again ,
The tax is zero on amounts of property that value less than $25,000.
A filing is needed to qualify for that exemption and to not have to file again in the future.
Hope that clarifies for you.
What if you never filed and you have had the house for a few years
Beause you never knew you had to
I am just not very knowledgable with this type of thing and want to be
Are there late fees on that
I just never knew
And I want to do what is right
so the TPP would be fridge, washer, dryer? What if the range/oven and garbage disposal was there when i bought it?
It does not matter if you bought them with the house or not.
You will just put an estimate of the current value and the original price for the total on line 16a of the form DR-405.
What if you dont have the original price
You will just put an estimate of the current value and estimate
the original price
Like I said what if it was 6 years ago that you started renting out the home? what are the penalties? brand new that stuff was maybe together that stuff was $3500.
It states on the document you forawred me that Do not include household goods: Examples, wearing apparel, appliances, furniture, and other items that ordinarliy found in the home and used for comfort of the owner and his family, and not used for commercial purposes....wouldn't the appliances in the house qualify as that since I used to live there and had all those appliances there....I used to live in that house before I was forced to rent it....
I used all those appliances
It is on page 3 of the instructions of the PDF Under What to Report, but is #2 on the Do Not Include
Then what does the info on page 3 mean?
Under Do not Include:
Other businesses do not include household goods.
Rental does list all household goods.
Sorry the instructions are not better.