FL Tax Law Specialist cheat sheet

Gross income under IRC §61 includes all income from whatever source derived unless a specific exclusion applies; exclusions include gifts, inheritances, qualified municipal bond interest, and tax-exempt fringe benefits.

Standard deduction amounts are indexed annually and vary by filing status; additional standard deduction applies for age 65+ or blindness. Itemized deductions are limited for high-income taxpayers under §68 and the SALT cap under §164(b)(6).

Above-the-line deductions reduce AGI and include the self-employed health insurance deduction, one-half of self-employment tax, HSA contributions, and the qualified business income deduction under §199A.

Capital gains are classified as short-term (held one year or less, taxed at ordinary rates) or long-term (held more than one year, taxed at preferential 0/15/20% rates under §1(h)).

Filing status is determined under §1 and §7703: single, married filing jointly, married filing separately, head of household (must maintain a household for a qualifying person), and qualifying surviving spouse.

Refundable credits include the Earned Income Tax Credit and the additional child tax credit; nonrefundable credits such as the child and dependent care credit and education credits are limited to tax liability.

The child tax credit under §24 is $2,000 per qualifying child under 17; the credit phases out at modified AGI thresholds of $200,000 (single) and $400,000 (MFJ).

The §199A qualified business income deduction allows up to 20% of qualified business income for pass-through entities, subject to W-2 wage and capital limitations and specified service trade or business phase-outs.

A sole proprietorship reports income and expenses on Schedule C (Form 1040); net profit is subject to self-employment tax under §1401 at 15.3% up to the Social Security wage base, then 2.9% Medicare.

Partnerships are pass-through entities under Subchapter K; Form 1065 and Schedule K-1 report distributive shares, and partners pay tax on their distributive share regardless of actual distributions.

Partnership allocations must have substantial economic effect under §704(b); a partner's outside basis is increased by contributions and income and decreased by distributions and losses.

C corporations are taxed at a flat 21% rate under §11; dividends to shareholders are taxed again at qualified dividend rates, creating double taxation.

S corporations under Subchapter S pass income through to shareholders but are limited to 100 shareholders, one class of stock, and eligible shareholders (individuals, certain trusts and estates).

Reasonable compensation paid to S corporation shareholder-employees is subject to payroll taxes; only the remaining pass-through income avoids self-employment tax.

Corporate formations under §351 are tax-free if transferors control the corporation immediately after the exchange (80% control test); liquidations under §331 and §336 generally produce gain or loss.

The accumulated earnings tax under §531 (20%) and personal holding company tax under §541 (20%) penalize C corporations that retain earnings beyond reasonable business needs.

Circular 230 governs practice before the IRS; practitioners must exercise due diligence, cannot give frivolous advice, and must maintain written records for returns they prepare or advise on.

The three-year assessment statute under §6501(a) is extended to six years for substantial understatements (greater than 25% of gross income) and unlimited for fraud or failure to file.

The IRS must issue a notice of deficiency under §6212 before assessing a deficiency; the taxpayer has 90 days (150 if outside the US) to petition the Tax Court.

Collection Due Process under §6320 and §6330 provides a hearing before levy or lien filing; the taxpayer may appeal to the Tax Court within 30 days of the determination.

The taxpayer can request innocent spouse relief under §6015 (joint and several liability); Form 8857 initiates the request and the IRS has 6 months to respond before judicial review.

Offers in Compromise under §7122 allow settlement for doubt as to collectibility, doubt as to liability, or effective tax administration; Form 656 is the application form.

The IRS may assert the accuracy-related penalty under §6662 (20%) for negligence, substantial understatement, or valuation misstatement; the fraud penalty under §6663 is 75%.

A power of attorney (Form 2848) or tax information authorization (Form 8821) authorizes representation; Form 2848 covers representation, while Form 8821 only authorizes information disclosure.

Florida imposes a corporate income tax on corporations doing business in Florida, taxed at 5.5% of net income apportioned to Florida (rate applies to taxable years beginning on or after January 1, 2021).

Florida uses an apportionment formula based solely on the sales factor under §220.15, Florida Statutes, for taxable years beginning on or after January 1, 2019.

The Florida corporate income tax return is Form F-1120; the return is due on the first day of the fifth month after the close of the taxable year (May 1 for calendar-year filers).

Florida has no corporate alternative minimum tax; the state does not allow the federal net operating loss deduction but allows a Florida NOL carryforward under §220.13(1)(b).

Florida's corporate income tax exemption threshold under §220.14 is $50,000 of net income; the first $50,000 of Florida net income is exempt from tax.

S corporations are generally exempt from Florida corporate income tax but must file Form F-1120 if they have Florida income; the entity is subject to the Florida franchise tax.

Florida imposes a franchise tax on corporations at $0.50 per $1,000 of net worth (minimum $150) under Chapter 220, reported on Form F-1120 with the corporate income tax return.

Florida's state sales tax rate is 6% under §212.05, Florida Statutes; counties impose discretionary surtaxes under §212.055 ranging from 0.5% to 1.5%, subject to the $5,000 single-item cap for certain surtaxes.

Sales tax applies to tangible personal property and specified services (e.g., commercial rent, nonresidential cleaning services, and certain admissions); use tax applies to property purchased outside Florida for use in Florida.

Sales tax returns (Form DR-15) are due on the 1st of the month following the collection period; the tax must be remitted by the 20th, and a 2% collection allowance is available if timely filed.

The annual resale certificate (Form DR-13) allows registered dealers to purchase inventory for resale without paying sales tax; the certificate must be renewed annually.

Florida provides a back-to-school sales tax holiday and a disaster preparedness holiday; the specific dates and eligible items are set annually by the Legislature.

Use tax is due on out-of-state purchases where no sales tax was collected, including online purchases; the rate matches the sales tax rate plus applicable county surtax.

The Florida sales tax permit (Form DR-1) must be obtained before making taxable sales; dealers who fail to register are subject to penalties and interest under §212.12.

Florida documentary stamp tax under §201.01 applies to written obligations to pay money, including promissory notes and mortgages; the rate is $0.35 per $100 (or fraction) of the amount secured for notes and written obligations.

Deeds transferring Florida real property are taxed at $0.70 per $100 of consideration under §201.02; Miami-Dade County imposes an additional surtax under §201.031.

A $0.35 per $100 documentary stamp tax applies to mortgages and other liens; the tax is generally paid by the buyer or borrower unless the contract specifies otherwise.

Florida intangible personal property tax was repealed for most taxpayers after 2006; the annual tax on stocks and bonds was eliminated, but the tax on certain obligations remains limited.

Florida imposes a 5.5% corporate income tax and a franchise tax; there is no personal income tax under the Florida Constitution, Article VII, Section 5.

The Florida documentary stamp tax on a deed is computed on the full consideration paid, including the amount of any mortgage assumed by the buyer.

Counties may impose a documentary surtax on deeds; Miami-Dade's surtax is 1.5% under §201.031 for certain single-family residences above a threshold.

The Florida Department of Revenue (FDOR) administers most state taxes; taxpayers may protest assessments by filing a petition for reconsideration or a protest within 60 days under §72.011, Florida Statutes.

A taxpayer may request a conference with the FDOR to dispute a proposed assessment; unresolved disputes may be appealed to the Division of Administrative Hearings (DOAH) or the circuit court.

The FDOR may issue a notice of intent to levy or a warrant for collection; the taxpayer may request a payment plan or an offer in compromise through the Department.

Penalties for late filing or late payment of Florida taxes are generally 10% per month up to 50% of the tax due, plus interest at the statutory rate under §213.235.

Taxpayers may request a refund of overpaid Florida taxes within 3 years of the date the tax was paid or the return was due, whichever is later, under §215.26.

The Florida Taxpayer Bill of Rights under §213.015 provides protections including the right to representation, the right to receive written notice, and the right to appeal.

The FDOR may compromise a tax liability under §213.21 when there is doubt as to liability or collectibility; the taxpayer must submit a written request with supporting documentation.

Gross income under IRC §61 includes all income from whatever source derived unless a specific exclusion applies; exclusions include gifts, inheritances, qualified municipal bond interest, and tax-exempt fringe benefits.

Standard deduction amounts are indexed annually and vary by filing status; additional standard deduction applies for age 65+ or blindness. Itemized deductions are limited for high-income taxpayers under §68 and the SALT cap under §164(b)(6).

Above-the-line deductions reduce AGI and include the self-employed health insurance deduction, one-half of self-employment tax, HSA contributions, and the qualified business income deduction under §199A.

Capital gains are classified as short-term (held one year or less, taxed at ordinary rates) or long-term (held more than one year, taxed at preferential 0/15/20% rates under §1(h)).

Filing status is determined under §1 and §7703: single, married filing jointly, married filing separately, head of household (must maintain a household for a qualifying person), and qualifying surviving spouse.

Refundable credits include the Earned Income Tax Credit and the additional child tax credit; nonrefundable credits such as the child and dependent care credit and education credits are limited to tax liability.

The child tax credit under §24 is $2,000 per qualifying child under 17; the credit phases out at modified AGI thresholds of $200,000 (single) and $400,000 (MFJ).

The §199A qualified business income deduction allows up to 20% of qualified business income for pass-through entities, subject to W-2 wage and capital limitations and specified service trade or business phase-outs.

A sole proprietorship reports income and expenses on Schedule C (Form 1040); net profit is subject to self-employment tax under §1401 at 15.3% up to the Social Security wage base, then 2.9% Medicare.

Partnerships are pass-through entities under Subchapter K; Form 1065 and Schedule K-1 report distributive shares, and partners pay tax on their distributive share regardless of actual distributions.

Partnership allocations must have substantial economic effect under §704(b); a partner's outside basis is increased by contributions and income and decreased by distributions and losses.

C corporations are taxed at a flat 21% rate under §11; dividends to shareholders are taxed again at qualified dividend rates, creating double taxation.

S corporations under Subchapter S pass income through to shareholders but are limited to 100 shareholders, one class of stock, and eligible shareholders (individuals, certain trusts and estates).

Reasonable compensation paid to S corporation shareholder-employees is subject to payroll taxes; only the remaining pass-through income avoids self-employment tax.

Corporate formations under §351 are tax-free if transferors control the corporation immediately after the exchange (80% control test); liquidations under §331 and §336 generally produce gain or loss.

The accumulated earnings tax under §531 (20%) and personal holding company tax under §541 (20%) penalize C corporations that retain earnings beyond reasonable business needs.

Circular 230 governs practice before the IRS; practitioners must exercise due diligence, cannot give frivolous advice, and must maintain written records for returns they prepare or advise on.

The three-year assessment statute under §6501(a) is extended to six years for substantial understatements (greater than 25% of gross income) and unlimited for fraud or failure to file.

The IRS must issue a notice of deficiency under §6212 before assessing a deficiency; the taxpayer has 90 days (150 if outside the US) to petition the Tax Court.

Collection Due Process under §6320 and §6330 provides a hearing before levy or lien filing; the taxpayer may appeal to the Tax Court within 30 days of the determination.

The taxpayer can request innocent spouse relief under §6015 (joint and several liability); Form 8857 initiates the request and the IRS has 6 months to respond before judicial review.

Offers in Compromise under §7122 allow settlement for doubt as to collectibility, doubt as to liability, or effective tax administration; Form 656 is the application form.

The IRS may assert the accuracy-related penalty under §6662 (20%) for negligence, substantial understatement, or valuation misstatement; the fraud penalty under §6663 is 75%.

A power of attorney (Form 2848) or tax information authorization (Form 8821) authorizes representation; Form 2848 covers representation, while Form 8821 only authorizes information disclosure.

Florida imposes a corporate income tax on corporations doing business in Florida, taxed at 5.5% of net income apportioned to Florida (rate applies to taxable years beginning on or after January 1, 2021).

Florida uses an apportionment formula based solely on the sales factor under §220.15, Florida Statutes, for taxable years beginning on or after January 1, 2019.

The Florida corporate income tax return is Form F-1120; the return is due on the first day of the fifth month after the close of the taxable year (May 1 for calendar-year filers).

Florida has no corporate alternative minimum tax; the state does not allow the federal net operating loss deduction but allows a Florida NOL carryforward under §220.13(1)(b).

Florida's corporate income tax exemption threshold under §220.14 is $50,000 of net income; the first $50,000 of Florida net income is exempt from tax.

S corporations are generally exempt from Florida corporate income tax but must file Form F-1120 if they have Florida income; the entity is subject to the Florida franchise tax.

Florida imposes a franchise tax on corporations at $0.50 per $1,000 of net worth (minimum $150) under Chapter 220, reported on Form F-1120 with the corporate income tax return.

Florida's state sales tax rate is 6% under §212.05, Florida Statutes; counties impose discretionary surtaxes under §212.055 ranging from 0.5% to 1.5%, subject to the $5,000 single-item cap for certain surtaxes.

Sales tax applies to tangible personal property and specified services (e.g., commercial rent, nonresidential cleaning services, and certain admissions); use tax applies to property purchased outside Florida for use in Florida.

Sales tax returns (Form DR-15) are due on the 1st of the month following the collection period; the tax must be remitted by the 20th, and a 2% collection allowance is available if timely filed.

The annual resale certificate (Form DR-13) allows registered dealers to purchase inventory for resale without paying sales tax; the certificate must be renewed annually.

Florida provides a back-to-school sales tax holiday and a disaster preparedness holiday; the specific dates and eligible items are set annually by the Legislature.

Use tax is due on out-of-state purchases where no sales tax was collected, including online purchases; the rate matches the sales tax rate plus applicable county surtax.

The Florida sales tax permit (Form DR-1) must be obtained before making taxable sales; dealers who fail to register are subject to penalties and interest under §212.12.

Florida documentary stamp tax under §201.01 applies to written obligations to pay money, including promissory notes and mortgages; the rate is $0.35 per $100 (or fraction) of the amount secured for notes and written obligations.

Deeds transferring Florida real property are taxed at $0.70 per $100 of consideration under §201.02; Miami-Dade County imposes an additional surtax under §201.031.

A $0.35 per $100 documentary stamp tax applies to mortgages and other liens; the tax is generally paid by the buyer or borrower unless the contract specifies otherwise.

Florida intangible personal property tax was repealed for most taxpayers after 2006; the annual tax on stocks and bonds was eliminated, but the tax on certain obligations remains limited.

Florida imposes a 5.5% corporate income tax and a franchise tax; there is no personal income tax under the Florida Constitution, Article VII, Section 5.

The Florida documentary stamp tax on a deed is computed on the full consideration paid, including the amount of any mortgage assumed by the buyer.

Counties may impose a documentary surtax on deeds; Miami-Dade's surtax is 1.5% under §201.031 for certain single-family residences above a threshold.

The Florida Department of Revenue (FDOR) administers most state taxes; taxpayers may protest assessments by filing a petition for reconsideration or a protest within 60 days under §72.011, Florida Statutes.

A taxpayer may request a conference with the FDOR to dispute a proposed assessment; unresolved disputes may be appealed to the Division of Administrative Hearings (DOAH) or the circuit court.

The FDOR may issue a notice of intent to levy or a warrant for collection; the taxpayer may request a payment plan or an offer in compromise through the Department.

Penalties for late filing or late payment of Florida taxes are generally 10% per month up to 50% of the tax due, plus interest at the statutory rate under §213.235.

Taxpayers may request a refund of overpaid Florida taxes within 3 years of the date the tax was paid or the return was due, whichever is later, under §215.26.

The Florida Taxpayer Bill of Rights under §213.015 provides protections including the right to representation, the right to receive written notice, and the right to appeal.

The FDOR may compromise a tax liability under §213.21 when there is doubt as to liability or collectibility; the taxpayer must submit a written request with supporting documentation.