Tangible tax

[anil]

I have recently bought a villa it davenport and have received a form to fill in about Tangible tax. I have tried to look it up but am still in the dark. can anyone explain what it is for and how to minimise it?

[blott]

Tangible property tax relates to the furniture and fittings in your home as it's a business (ie you rent it out). The form is concerned with getting the purchase price of all the items in your home and depreciating these over a term. You must also add any new items that you have purchased for your home on the return.

I haven't found any way to minimise it (so far!) and it's usually between $100 and $200 per year (or thereabouts). Just make sure that you depreciate items each year. If you have a US accountant, check whether they do this form for you.

If you're in Polk County, you might find this useful http://www.polktaxes.com/generalinfo/datesdea.asp

[anil]

No that note is it worth getting an accountant or can you do the tax returns your selves.

[blott]

You can do the tangible property tax return yourself but some US accountants include this service in with their annual IRS return charges.

[semerton]

If you think tangible tax is alot wait until you get the property tax I was not aware of all of these taxes until I had brought the property good luck with your home you will enjoy it once you find all there is to now about it
Sylvia

[anil]

I think i will have to get an accountant. what is the average cost per year that i should budget for?

[blott]

Anil, this is a bit like asking how long is a piece of string! However, most US accountants charge between $200 - $500 for an annual tax return for one vacation home owned by two people. Some of them include the Tangible Property Tax return also in the same price and some don't (you'd need to specifially ask if this is the case).

BTW, the annual property tax that Semerton refers to above is around $2000 - $3000 per year, depending on property size and county so you might like to include that into your budget. This is often included in an escrow account with your mortgager so that you make monthly payments throughout the year.

[anil]

I have got myself an accountant in the states and is charging around $275 a year so thanks for the input

[Ian Dee]

We were sent a Tang.Prop.Tax form direct. At first I was a bit confused so phoned from UK and spoke to them direct - most helpful. I explained that as far as the value was concerned I had no clue as we bought with the furniture package. She suggested we ask the developer what amount of the package was for furniture. We did and entered the figure. The estimates (Polk County) go out in August for payment in November. I think you get a discount for early payment. The amount depreciates each year.
Re the accountant - it depends on how many involved e.g. 1 or 2 (3,4)joint owners. These forms are complicated & I would not want to try it. Find one that gives a feedback. Our 1st one is not forthcoming and we will probably change. HOwever, its unlikely that any tax will be payable unless the villa is rented out well past your break even point as there are so many tax deductables.
Its a 'jungle' out their for new owners and a forum such as this is a great comfort.