Florida help needed - 3 topics

[FEDUKE404]

A client has now moved to Florida and there are a few issues that need some clarification. Thanks in advance for any comments!!

Community Development Districts
These separate "CDD" charges appear on the county tax bill as "non ad-valorem assessments" and (of course!!) are also listed as "property taxes" on the Form 1098 from the mortgage holder. Everything I can find supports these items are not allowable as deductible real property taxes. Apparently many people feel otherwise. . .especially if they don't take the time to view the actual county tax bill. I plan to claim only the ad valorem taxes, in spite of some pushback from the client. Agree?

Sales tax on automobiles
It appears the "regular" FL sales tax (usually 7% being 6% FL plus 1% local) applies to the total cost of a new vehicle. I plan to use the IRS sales tax tables for FL and then add the vehicle sales tax to the total for Schedule A purposes. Agree?

Personal property tax on vehicles
There appears to be zero personal property tax, of the annual ad valorem type, on vehicles registered in FL. (I find this somewhat surprising for the "no income tax" state!!) Agree?

FE

[oceanlovin'ea]

will try to help

yes, use the sales tax table and add the sales tax from the bill of sale for the vehicle.

There is no personal property tax in Florida. There is a tangible tax on attachments to mobile homes. I think that is the only thing

The real estate taxes. I must admit that I use the amount they pay to the tax collector for the deduction. I guess that probably is not really correct but that is what I have always done.
A lot of times they tell me what they paid. They don't actually bring in the paper.

Hope I helped some.

Linda F

[FEDUKE404]

Deducting non ad valorem property taxes for FL residents

The real estate taxes. I must admit that I use the amount they pay to the tax collector for the deduction. I guess that probably is not really correct but that is what I have always done.
A lot of times they tell me what they paid. They don't actually bring in the paper.

Hope I helped some.

Linda F

Thanks for the response. (I was beginning to wonder if there were any TTB folks working in Florida!)

As for the CDD costs, the tax bill I (separately) obtained states quite clearly the total ad valorem taxes (there are seven groups, to include $50k/$25k homestead exceptions), but the tax bill also separately shows "Non Ad Valorem Assessments" to include the CDD amount and a $75.00 fee for "fire and rescue."

Sadly, I cannot in clear (professional) conscience deduct the non ad valorem assessments as allowable property taxes, regardless of what is shown on the Form 1098.

A side issue: Your clients would apparently NOT be getting the annual cost basis increase from the "assessments" they paid via the CDD fees ? ? ?

Guess I won't be too popular with the FL folks. . .

FE

[oceanlovin'ea]

have to look at tax statement

I think you do have to look at the tax statement. For example, personally I don't have any Non-Ad Valorem Assessments on my tax statement. So it depends on many different scenarios as to what taxes are assessed.

The majority of my clients are not able to itemize deductions any more. But I will start looking at that in the future. It really was an oversight on my part in the past.

Linda F

[FEDUKE404]

More on CDDs

I think you do have to look at the tax statement. For example, personally I don't have any Non-Ad Valorem Assessments on my tax statement. So it depends on many different scenarios as to what taxes are assessed.

The majority of my clients are not able to itemize deductions any more. But I will start looking at that in the future. It really was an oversight on my part in the past.

Linda F

I think the major FL culprit is the impact of the "Community Development District" aspect. I first saw those fees separately mentioned on a 2016 closing statement, and started scratching my head. Apparently they are unique to "new" FL areas, and are a back-door way of raising/paying off costs (bonds?) for local development. The district in question has ~8 groups, so a homeowner falls into a specific payment group based only on the acreage of the lot. It is my understanding these costs will decrease annually and (for my client) disappear completely in a few years.

I was pleasantly surprised (shocked?) to hear that FL has no personal property taxes on automobiles, boats, RVs, etc. Maybe if they suggested such there would be rioting in the streets?

FE