Florida Tax Issues– some basics of Florida taxes are summarized below: A. Individual income tax– none (1 of 7 states – Alaska, Nevada, South Dakota, Texas, Washington, and Wyoming – without an individual income tax (while New Hampshire only taxes portfolio income)). B. Corporate income tax– the state taxes corporations at 5.5% (3.3% AMT). Honors an S election. Return is due the first day of the fourth month following year end. State tax year is the same as the federal tax year. Essentially “piggybacks” the Federal return. Florida taxable income = Federal taxable income +/– adjustments. Some common adjustments between Federal and Florida taxable income include: •state income taxes not deductible, •no NOL or capital loss carryback, •foreign income taxes are deductible, •a consolidation adjustment is available, •federal interest is exempt while state interest is taxable, and •a $5,000 exemption is allowed. C. Gift tax– none. D. Estate tax– Florida statutes specify that the Florida estate tax is equal to the amount of the federal credit for state death taxes. As the credit was replaced by a deduction after 2004, the Florida estate tax was effectively been repealed.
This is the end of the preview.
access the rest of the document.