an_ordinary_guy_158[at]hotmail.com (Bill) wrote:
- quote -

Sorry about that. It is 1/10th of one percent. Starting in 2004,
the value of assets that are exempt jumps dramatically to
$250,000 or $500,000 (currently $20K/$40K) depending upon whether
you are single or married.

Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

It occurred to me that piecemeal answers were being
provided, when a simple reference site could be posted.
(Don't know why I didn't think of this before - Duh)

Here's the URL for everything you might need to know, plus
links to even more info:

http://www.myflorida.com/dor/taxes/ippt.html

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Vic Dura asked:

- quote -

No. "All intangible property held in an employee welfare,
benefit or retirement plan [401k]" ... "in an Individual
Retirement Account (IRA)"
... or "deferred compensation plan" ... is specifically exempted from
the tax.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

an_ordinary_guy_158[at]hotmail.com (Bill) wrote:
- quote -

Are 401k and IRA accounts included in calculation of the tax?

--
To reply to me directly, remove the XXX characters from my
email address.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"B. Newman" <bernardnewman[at]comcast.net> wrote:

- quote -

May want to check with a Florida preparer and a Florida
attorney to see if a Florida Intangibles tax trust (FLINT)
is still a viable option


<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"Ed Durall" <edurall[at]aol.com> wrote:

- quote -

That's right.
See:
http://www.myflorida.com/dor/taxes/new.html

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

A.G.Kalman responded:

- quote -

Just for the record, the tax is 1/10th of 1%. The net
taxable holding (after $20K Single or $40K MFJ) is
multiplied by .001 to determine the tax due.

And you should also be aware that to be non-taxable,
"Government Holdings" must be in U.S. Government securities
(or Puerto Rico, etc. bonds). Other state or muni bonds are
not safe havens.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

edurall[at]aol.com (Ed Durall) wrote:

- quote -


How do they figure the tax on closely held and/or Sub S corps?

--
I do not recall being voted the Village Idiot... but my name
was on the ballot.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"B. Newman" <bernardnewman[at]comcast.net> wrote:

- quote -

Don't forget there is a $50,000 exemption. Do they have
much more than that in investments?

Mike

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Cash, money markets held by banks, IRAs, annuities, Florida
municipal bonds, and Govt securities are among the items
that are not subject to the intangible tax.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

"B. Newman" <bernardnewman[at]comcast.net> wrote:

- quote -

A couple quick thoughts.

Your parents' broker can move money fund accounts into a US
Treasury bond fund prior to Jan 1, then move it back into
the money fund immediately after Jan 1. This avoids
taxation on the money fund.

Be sure to check the makeup of all mutual funds held by your
parents to ascertain the percentage of holdings in US
Securities or Florida municipal bonds. That percent of the
fund is not taxable. Most funds provide this information at
year's end. At their age, you parents are probably
interested more in current income than long term
opportunities. They should consider moving some investments
into certain bond funds involving US obligations and FL
municipal bonds.

If your parents are shareholders in a closely held
corporation in FL, and that Corp. has indicated on its
Intangible Tax Return that it has elected to pay the tax as
agent for the shareholders, those shares should not be shown
on the individual return.

Note that if the intangible tax liability is not at least
$60, no tax is due and the return need not be filed. If a
tax is due, file the return as early as possible to take
advantage of the early filing discount.

Tallahassee has been threatening to eliminate this tax for
years, but given the current fiscal crunch, I wouldn't look
for it to happen anytime soon.

Don Rosenberg, EA
Pensacola, FL

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

B. Newman" <bernardnewman[at]comcast.net> wrote:

- quote -

Shares in a Money Market Fund are valued at their closing
market value on the last business day of the previous calendar
year. Money market accounts at a bank are treated as "money in
the bank" and are exempt from the tax. There is nothing in FL
law that prevents anyone from converting any intangible item to
cash by the last business day to avoid the 1% tax.

Alan
http://taxtopics.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

OK, so my parents, in their late 60's now, moved to Florida
this past February. I know that next year I'll have to file
an Intangible Tax return for them for their investment assets.
I am wondering if there are any "tricks" that are legal.
While I understand the tax, I haven't had any actual "hands on"
experience and would appreciate it if you would share any
valueable nuances. For instance, somewhere I heard that you
should move funds out of money markets to cash just before Jan 1st.

My parents are not megamillionaires, but they do have enough that
this tax will cost them a few scheckels each year. Any tips on
how to legally keep this tax to a minimum would be appreciated.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->