Are you looking to invest in real estate in Tampa, Florida? If so, you may be eligible for some great tax incentives. The Tampa Bay Opportunity Zone (QOF) offers investors the chance to increase their base to the fair market value of their investment if they hold it for at least 10 years. Additionally, operating as a limited liability company (LLC) in Florida can provide real estate investors with the benefit of not having to pay individual income tax. Furthermore, there are significant tax benefits for real estate investors in Florida compared to other states. When making real estate transactions, collecting rent, or obtaining dividends on commercial properties from a real estate investment in Florida, the state's 5.5% franchise rate will apply if you operate as a type “C” corporation.
It is also possible to create an LLC to be treated as a public limited company under the Florida tax code, which would involve paying Florida taxes. Investors who keep their money in an opportunity fund for at least 10 years will not have to pay any capital gains tax for any additional appreciation their investment has experienced since it was deposited in the fund. Sole proprietors are defined as businesses owned by a single person, and in Florida there is no separate business or corporate tax for sole proprietors. For more information on how to take advantage of these tax incentives when investing in real estate in Tampa, Florida, consult with a qualified financial advisor or accountant. They can help you understand the rules and regulations and ensure that you are taking full advantage of all available tax incentives.