West Palm Beach, FL · Member since 2022 · 12 posts · 7 votes
My girlfriend and I are looking to begin in REI with a house hack in the West Palm Beach area. With any lease under 6 months in Florida being subject to 6% sales tax plus additional county tax, I have read that those taxes do not apply for owner-occupied transient housing.
We are planning to rent rooms to coworkers who are seasonal (~7-8 months per year), but are looking for options in the other 3-4 months. Do we still need to register with the state and pay the tax if we have short term renters in our house while also living there, or will that be considered exempt?
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Chris Martin I started my career with house hacking in Florida. Of course, I will say "consult your CPA" but this is a non-issue. I want you to claim the income, as we all should, on your federal income taxes each year. There is no state income tax in Florida. If you are operating a business, that's something else. If you have to register your home for STR purposes, that is also different. But any lease over 30 days, in your own personal home, you should be fine with. If you live in a HOA/COA please check with their bi-laws on it. And consult your CPA to confirm.
Lender · Fort Worth, TX · Member since 2016 · 8k+ posts · 6k+ votes
3y
@Chris Martin I started my career with house hacking in Florida. Of course, I will say "consult your CPA" but this is a non-issue. I want you to claim the income, as we all should, on your federal income taxes each year. There is no state income tax in Florida. If you are operating a business, that's something else. If you have to register your home for STR purposes, that is also different. But any lease over 30 days, in your own personal home, you should be fine with. If you live in a HOA/COA please check with their bi-laws on it. And consult your CPA to confirm.
My girlfriend and I are looking to begin in REI with a house hack in the West Palm Beach area. With any lease under 6 months in Florida being subject to 6% sales tax plus additional county tax, I have read that those taxes do not apply for owner-occupied transient housing.
We are planning to rent rooms to coworkers who are seasonal (~7-8 months per year), but are looking for options in the other 3-4 months. Do we still need to register with the state and pay the tax if we have short term renters in our house while also living there, or will that be considered exempt?
Congrats on getting started in REI. Well for those 3 months, it depends what you want to do. If you are going to register the property with the city as a STR (AirBnb, VRBO, etc), then yes you will have to pay that....but otherwise, how would the city know you rented out your place for 3 months to a renter? It's kind of up to you at that point.