Posted by Rich[FL] on January 10, 2003 at 12:41:18:
My take on this is that since it was originally on a long-term lease (greater than 6 months) that reverted to a month-to-month, the exception still applies. Best bet would be to get a legal reading on this. You never know how the state would like to interpret this since they’re always looking for money.
Rich
Gotta love taxes *Important for Landlords in Fl - Posted by kayla Fl
Posted by kayla Fl on January 10, 2003 at 10:30:50:
Gotta love the government in Florida:
http://sun6.dms.state.fl.us/dor/taxes/res_real_property.html
Re: Gotta love taxes *Important for - Posted by Rob FL
Posted by Rob FL on January 10, 2003 at 13:28:23:
This is for “transient” rental properties like hotels, vacation rentals, and such. There is a specific exemption in the Florida code for “primary residences.” Just make sure you have in the lease that the tenant must use the property as their primiary residence and no sales tax is required
IS this saying… - Posted by Chris - Fl
Posted by Chris - Fl on January 10, 2003 at 10:44:02:
that if you lease/option a house from a seller that you will have to pay taxes if you put a tenant buyer in there???
Any person who leases a taxable accommodation and then subleases it to a third party, must register as a dealer and collect the applicable tax due on the subrents, subleases, sublets, or licenses. The dealer may choose to issue an Annual Resale Certificate to the property owner or property owner’s representative to purchase accommodations tax-exempt or take a credit for the tax that was paid to the owner or owner’s representative on the original lease.
Any person who cannot prove that sales tax has been paid to the landlord is directly liable to the state for any applicable tax, interest, or penalty due on the subleased property.
Re: Gotta love taxes *Important f - Posted by Greg (NJ)
Posted by Greg (NJ) on January 10, 2003 at 10:44:00:
That link does not work?
Re: Gotta love taxes *Important for - Posted by Chris - Fl
Posted by Chris - Fl on January 10, 2003 at 14:02:33:
Does this become an issue when involved in a “sandwich lease” option?
Re: IS this saying… - Posted by Robert
Posted by Robert on January 10, 2003 at 11:12:14:
According to the best source I know, www.floridalandlord.com, a residential property being rented for a tenancy longer than six months is not considered a “taxable accomdation” and is not subject to Florida’s sales and use tax. What’s posted here pertains residential property rented for less than six months and to all commercial property which is subject to Florida’s sales and use tax.
Re: IS this saying… - Posted by Rich[FL]
Posted by Rich[FL] on January 10, 2003 at 10:49:25:
Look closely at what it is saying. This has to do with TRANSIENT lodging. Remember, FL is the king of vacation destinations. It’s just another way to generate revenue for the state - tax the vacationer’s overnight stays.
If you look at the exceptions, the first one listed says a bonefide lease of 6 months or longer. That should encompass nearly every lease-option type of arrangement most investors get into.
This law has been in effect for quite some time and is not new.
Rich
Re: Gotta love taxes *Important for - Posted by Rob FL
Posted by Rob FL on January 10, 2003 at 21:30:16:
Possibly. I know it applies to commercial property leases like an office building. I’ve never done a sandwich lease option. In my opinion, there are too many potential problems for things to go wrong.
Re: IS this saying… - Posted by kayla Fl
Posted by kayla Fl on January 10, 2003 at 12:34:04:
What if it is a regular lease, that expires and is automatically sent to a month to month lease?