If you are running a business or rental property in Florida, then you may need to pay Florida tangible taxes. Tangible property refers to everything used in a business or rental property that is not real estate. For example, furniture, equipment, office supplies, tools, computers, signs and more.
Filing Florida Tangible Taxes
In the first year of your business, you’ll need to file an initial tax return for any tangible personal property that you own on January 1st by April 1st of that year. Following that initial return, you’ll need to file a return if the value of your tangible property is more than $25,000. This is according to the Florida Statutes. Keep in mind that all property that’s either in use or in your possession needs to be reported, whether it’s fully depreciated in your accounting records or not.
When it comes to filing your tangible taxes, you’ll need to list your assets separately for each location of your business that you own (if you have more than a single location). To file your tangible taxes, you will need to fill out a DR-405 form, which is the Tangible Personal Property Tax Return form. This form will need to be filed with the Property Appraiser.
If you don’t file your Tangible Personal Property Tax Return and you were required to, or if you file it late, you will be penalized. These include the following penalties:
- A return that’s filed late can be penalized by five percent per month or a part of that month.
- A 15 percent penalty will be imposed for all property that’s unreported.
- A 25 percent penalty will be imposed if you don’t file a return at all.
If you don’t have any tangible assets to report, then you will need to fill out a TPP Account Status Change form and provide an explanation. If you went out of business before January 1st or after January 1st, you will still need to file a return. You will need to provide information regarding the date you went out of business, whether the business was sold, and what happened to the assets of the business (whether they were sold, scrapped or abandoned).
If you run a business, then it’s important that you file a Tangible Personal Property Tax Return. For professional assistance with your tax planning and accounting, be sure to contact us at Valezar & Associates today.