Pioneering a path through paperwork and tax codes

Important Information About Form W-8ECI and Form W-9

My management company has sent me a Form W-8ECI and Form W-9 to complete.  I am sure I have submitted one of these before – do I have to complete another form?  What happens if I don’t? Non-resident owners of U.S. rental property may receive a request from their management company or booking agent for a newly completed and… Continue Reading

What is a 1099 Form?

Form 1099 is issued by U.S. corporations, small businesses and other employers to record the income earned by employees and independent contractors. There are several versions of the 1099 which may be used to report different types of income such as interest, dividends, real estate sale proceeds and debt cancellation.  The form reports income to… Continue Reading

What is a W-9 Form?

Foreign investors are sometimes asked to complete and return Form W-9 to their managing agent, booking agent, U.S. bank etc.  The Form W-9 is used to request an individual’s taxpayer identification number.  For federal tax purposes you are considered a U.S. person if you are a U.S. citizen or U.S. resident alien, a partnership, corporation,… Continue Reading

What is an LLC – Limited Liability Corporation?

An individual investor taking ownership of U.S. property via an LLC limits their exposure to liability and is considered a disregarded entity for tax filing purposes. The non-resident investor files an individual U.S. income tax return, Form 1040NR. Income and capital gain is taxed at the more beneficial individual income tax rates. There are disadvantages:… Continue Reading

What is an LLP- Limited Liability Partnership?

Limited Partnership (LP) An LP has at least one general partner and at least one limited partner. The general partner has the same role as in a general partnership; controlling the company’s day-to-day operations and being personally liable for business debts. The limited partners contribute financially to the business but have minimal control over business… Continue Reading

Tangible Personal Property Tax

Tax return filed annually to the Property Appraiser’s Office (in the County where the rental property is located), due by April 1st – late filing penalties effective after this date.  Tax bills are mailed out on or before November 1st each year.  Payment is due by March 31st with discounts available for early payment.  A… Continue Reading

What is a Florida Registered Agent?

Florida Statutes dictate that each corporation, foreign corporation, or alien business organisation that owns real property located in Florida, that owns a mortgage on real property located in Florida, or that transacts business in Florida shall have and continuously maintain a registered office and registered agent. In addition; a foreign corporation that owns Florida real… Continue Reading

Sales & Use Tax

Payable on short term rental income (individual bookings of less than six months).  Filed monthly to the Florida Department of Revenue (DOR), due by 1st of month; late filing penalties effective after 20th of month. In Florida, Sales and Use Tax is payable on all short term rental income, regardless of where it is received. Your management company… Continue Reading

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