Friday, February 17, 2012
Are these people trying to avoid taxes by not showing any rentals? I have two rental homes and I show my rentals on line and the city sent me a letter after just 3 months saying I needed to start sending taxes (I naively thought I paid at the end of the year). Does the city send these rentals a letter as well? How does the city and state know how much you actually rent your property if you do not show it on your rental site? I am in Cape Coral, Florida.|||I show it on my tax return. I pay quarterly taxes, and have never once had a problem. I have a house by Yosemite National park. In addition to the normal income tax I pay on the rent I receive to the state and the IRS I also have to pay the city a hotel tax, which is set per night, it does not matter how much I charge.|||I think it could be a combination of several things. First, maintaining multiple calendars can be time consuming. Personally I keep one calendar. Second, some people don't keep the calendar because they want to get a lot of inquiries. On the other hand, my preference is to get quality inquiries for the times that we have open. Third, I just think it's lack of detailed management. They just don't want to deal with it.
If a person advertises their rental property, then most government agencies are going to expect that there is some rental income regardless of the calendar.
Oh, that's right. It's Oct., and time to pay my state taxes again.
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