Talk of The Villages Florida - Rentals, Entertainment & More
Talk of The Villages Florida - Rentals, Entertainment & More
#1
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"Rent includes sales tax" Calculations
So if I charge X amount of $$ for a rental fee and state that it includes sales tax, do I reverse calculate how much the rent charge is in order to figure out what the sales tax is? The FL DoRevenue website does not get this specific.
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#2
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My husband is a CPA and says this is correct.
If sales tax is 7%,you divide by 1.07. If the rent is $1000 you divide by 1.07: $934.58 for the rent and the difference between that and the $1000 would be the tax. You just divide the total by 1.07 or whatever the sales tax is. |
#3
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#4
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Jane is correct, except in Sumter Co. the tax is 9%. I did it that way the many years I had my rental. It's nicer for the customer, they know exactly how much it will be without any add ons. You count both the rent as your income and the tax as your expense for taxes. Your rent will be lower than some but including tax, is a great plus.
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#5
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$934.58 plus sales tax of $65.42 (934.58 x .07)
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Real Name: Steven Massy Arrived at TV through Greenwood, IN; Moss Beach, CA; La Grange, KY; Crystal River, FL; The Villages, FL |
#6
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Unless the law has changed, sales tax is only charged if the rental term is less than six months.
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A Promise Made is a Debt Unpaid ~~ Robert W. Service ~~ |
#7
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Don't know FL law but most states say tax has to be shown as a separate entry on you invoice.
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#8
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#9
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You have to register with the Florida Dept of Revenue and the County that the property is in; and do two separate tax returns. You pay quarterly to the County and monthly to the State. And you need to tell the renter the tax they are paying.
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#10
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Thanks for the responses. Yes, I have registered with the Florida Dept of Revenue. For Sumter Co I am using a total of 9% (6 for state tax, 1 for county discretionary, and 2 for county tourism development). So I am dividing my total charge by 1.09 to determine the amount of rent and go from there to figure the tax. Thanks again
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#11
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Does Marion, Sumpter & Lady Lake Counties require you pay taxes on short term rentals?
Last edited by helen lovely; 06-21-2014 at 03:39 PM. Reason: space |
#12
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Yes, Lake, Sumter and Marion all require sale's tax on short term rentals.
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#13
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Why do we need to register with the state of FL? Do we pay all the 9% to the county, right? And we also need to pay federal tax because this is income.
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#14
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I disagree with Jane, I believe when you file your monthly taxes with the FL Dept of Revenue that you are paying your County taxes then.
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#15
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Separately you file to the County whatever their sales tax is. My husband is a CPA. He knows the rules. |
Closed Thread |
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