FL Tax Law Specialist flashcards

33 cards. Read the term and the definition here. The deck at the top of this page is optional.

Gross Income Definition

All income from whatever source derived unless specifically excluded by the Internal Revenue Code. Exclusions include gifts, inheritances, and qualified municipal bond interest.

Head of Household Status

Filing status requiring an unmarried or considered-unmarried taxpayer who maintains a household for a qualifying person for more than half the year. Provides favorable rate brackets.

Standard Deduction

An indexed deduction amount varying by filing status that reduces taxable income. Additional amounts apply for taxpayers age 65 or older or blind.

Long-Term Capital Gain Rate

Gain on assets held more than one year is taxed at preferential rates of 0%, 15%, or 20% depending on taxable income and filing status, rather than ordinary rates.

Section 199A Deduction

Allows up to 20% of qualified business income from pass-through entities to be deducted, subject to W-2 wage and capital limitations and specified service business phase-outs.

Self-Employment Tax

Tax under IRC §1401 on net self-employment earnings, consisting of 15.3% for Social Security up to the wage base plus 2.9% Medicare with no cap.

Partnership Distributive Share

A partner's allocated portion of partnership income, gain, loss, and deduction reported on Schedule K-1, taxable regardless of whether cash was distributed.

S Corporation Eligibility Limits

S corporations may have no more than 100 shareholders, only one class of stock, and only eligible shareholders such as individuals, certain trusts, and estates.

Section 351 Control Test

A transfer to a corporation is tax-free only if the transferors own at least 80% of the total combined voting power and 80% of other classes immediately after.

C Corporation Tax Rate

C corporations are taxed at a flat 21% rate under IRC §11; distributions to shareholders are taxed again as dividends, producing double taxation.

Notice of Deficiency

A formal IRS notice under §6212 issued before assessing a deficiency. The taxpayer has 90 days (150 outside the US) to petition the Tax Court.

Collection Due Process Hearing

A hearing under §6320 or §6330 available before a levy or lien filing. The taxpayer may appeal the determination to the Tax Court within 30 days.

Circular 230 Duties

Regulations governing practice before the IRS, requiring due diligence, prohibiting frivolous positions, and requiring written records for returns prepared or advised.

Offer in Compromise

An agreement under §7122 to settle a tax liability for less than the full amount based on doubt as to collectibility, doubt as to liability, or effective tax administration.

Form 2848 Power of Attorney

Authorizes a representative to act on the taxpayer's behalf before the IRS, including signing and receiving confidential information. Form 8821 only authorizes information disclosure.

Accuracy-Related Penalty

A 20% penalty under §6662 for negligence, substantial understatement, or valuation misstatement. The fraud penalty under §6663 is 75%.

Florida Corporate Tax Rate

Florida taxes corporations at 5.5% of net income apportioned to Florida for taxable years beginning on or after January 1, 2021.

Florida Sales Factor Apportionment

For taxable years beginning on or after January 1, 2019, Florida apportions corporate income using only the sales factor under §220.15, Florida Statutes.

Florida Form F-1120

The Florida corporate income tax return, due the first day of the fifth month after the close of the taxable year, such as May 1 for calendar-year filers.

Florida Net Income Exemption

Under §220.14, the first $50,000 of Florida net income is exempt from Florida corporate income tax for corporations subject to the tax.

Florida Franchise Tax

A tax on corporations at $0.50 per $1,000 of net worth with a $150 minimum, reported on Form F-1120 alongside the corporate income tax return.

Florida Sales Tax Rate

The state sales tax rate is 6% under §212.05, Florida Statutes. Counties may add discretionary surtaxes of 0.5% to 1.5% under §212.055.

Florida Resale Certificate

Form DR-13 allows registered dealers to buy inventory for resale without paying sales tax. The certificate must be renewed annually.

Florida DR-15 Return

The Florida sales and use tax return, due on the 1st of the month following the collection period. Tax is remitted by the 20th with a 2% collection allowance.

Florida Use Tax

A tax on property purchased outside Florida for use in Florida when no sales tax was collected. The rate matches the sales tax plus applicable county surtax.

Florida Sales Tax Permit

Form DR-1 registration required before making taxable sales. Dealers who fail to register face penalties and interest under §212.12, Florida Statutes.

Florida Documentary Stamp Tax on Deeds

A tax of $0.70 per $100 of consideration on Florida real property deeds under §201.02. Miami-Dade County imposes an additional surtax under §201.031.

Florida Documentary Stamp Tax on Notes

A tax of $0.35 per $100 or fraction of the amount secured by promissory notes and other written obligations under §201.01, Florida Statutes.

Florida Intangible Property Tax

A tax repealed for most taxpayers after 2006. The annual tax on stocks and bonds was eliminated, though limited obligations may remain subject.

Florida No Personal Income Tax

The Florida Constitution, Article VII, Section 5, prohibits a personal income tax. Florida relies on sales, corporate income, documentary stamp, and other taxes.

Florida Protest Deadline

Under §72.011, Florida Statutes, a taxpayer generally must file a protest of an assessment within 60 days to preserve administrative and judicial remedies.

Florida Refund Claim Period

Under §215.26, a claim for refund of overpaid Florida tax must be filed within 3 years of the payment date or return due date, whichever is later.

Florida Taxpayer Bill of Rights

Section 213.015, Florida Statutes, provides protections including the right to representation, written notice of rights, and the right to appeal agency actions.