Florida Corporate Income Tax provides comprehensive discussions on a wide range of issues dealing with the taxation of corporate entities in Florida and considers important issues for all corporations doing business in Florida. Written by William D. Townsend of Fowler, White, Boggs P.A., this Portfolio gives a detailed discussion of the federal limitations imposed on Florida's corporate tax scheme, including a discussion of constitutional limitations, such as the due process and commerce clauses, and federal statutory limitations, such as Pub. L. No. 86-272. The author also offers insight concerning Florida's Corporate Income, Franchise, and Emergency Excise taxes. This discussion includes special issues affecting such entities as S corporations, partnerships, limited liability companies, and financial institutions.
In addition, this Portfolio explains apportionment and allocation issues, the unitary business doctrine, and the exemptions and credits available to corporate entities. Administrative and return requirements are also discussed in detail.
Florida Corporate Income Tax allows you to benefit from:
This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.
Detailed Analysis
2000.01. INTRODUCTION
2000.02. TAXABLE ORGANIZATIONS
A. Generally
B. Entities Subject to Tax
C. Activities Subjecting Corporations to Tax
1. General Standards
2. Qualified to Do, or Doing, Business: Constitutional Parameters
a. Qualified to Do Business
b. Doing Business
c. Doing Business: Specific Activities
d. Partnerships and S Corporations
2000.03. TAXING METHODOLOGY OVERVIEW
A. Piggybacking
B. Net Income
C. Apportionment and Allocation
D. Adjusted Federal Income
1. Generally
2. Add-Backs
3. Subtractions That Increase Tax
4. Subtractions That Reduce Tax
5. Special Rules
6. Net Operating Losses - General Rules
E. The Classification of Income - Business v. Non-business
1. Definition of Non-Business Income
2. Examples of Business Income - Rental Income
3. Examples of Business Income - Asset Sales
4. Examples of Business Income - Interest
5. Examples of Business Income - Dividends
6. Examples of Business Income - Royalties
7. Examples of Non-business Income
F. Origin and Purpose Test
G. Constitutional Parameters
H. Functionally Related Dividends
I. Allocation of Non-business Income
1. Introduction to Allocation
2. Non-business Income Allocation Rules - Rents and Royalties
3. Capital Gains and Losses
4. Interest and Dividends
5. Patent and Copyright Royalties
6. Planning Suggestions for Non-business Income
2000.04. APPORTIONMENT OF ADJUSTED FEDERAL INCOME
Introductory Material
A. The Unitary Business Concept
B. The Sales Factor
1. Intangible Personal Property
2. Sales of Goods
3. Other "Sales"
4. Attributing Sales to Florida
5. Sales of Tangible Personal Property in Florida
6. Citrus Growers
7. Throwback Rule
8. Sales of Property Other Than Tangible Personal Property in Florida
9. Sales Denominated in Foreign Currency
10. Consistency
C. The Property Factor
1. Valuation - Owned Property
2. Rented Property - General Rule
3. Subrent Alternative Method
4. Valuation Period
5. Annual Rent
6. Leasehold Improvements
7. Average Value
8. Double Counting Property
9. Attributing Property to Florida
D. Payroll Factor
1. Compensation
2. Employees
3. Compensation Paid in Florida
4. Consistency
E. Zero In Numerator or Denominator
F. Apportionment Formulas for Special Industries
1. Financial Organizations
2. Insurance Companies
3. Transportation Companies
G. Special Rules if General Apportionment Method Does Not Fairly Represent Activities in Florida
1. General Principles
2. Separate Accounting
2000.05. CONSOLIDATED RETURNS
A. Who May File - General Rule
1. Florida Parent
2. Grandfather Election
3. First-Time Election
4. Filing Requirements
5. Parent as Agent
6. Piggybacking
7. Mistaken Treatment
8. Consolidated Estimated Tax
9. Consequences of Filing Consolidated Returns
B. Apportionment for a Consolidated Group
2000.06. ADMINISTRATIVE AND RETURN REQUIREMENTS
A. General Return Rules
B. Rules Pertaining to Florida Partnerships
C. Receiver
D. Submitted by Whom
E. Verification
F. Filing Deadlines
1. General Rules
2. Extensions of Time
G. Duties Triggered by Federal Adjustments
H. Declaration of Estimated Tax
1. Who Must File
2. Time for Filing
3. Payments of Estimated Tax
4. Estimated Tax Penalties and Interest
I. Alternative Minimum Tax
J. Emergency Excise Tax
K. Corporate Tax Return Review Process
2000.07. EXEMPTIONS AND CREDITS
A. The $5,000 Exemption
B. Gasohol Development Tax Incentive Credit
C. Enterprise Zone Jobs Credit
D. Enterprise Zone Property Tax Credit
E. Community Contribution Tax Credit
F. Hazardous Waste Facility Tax Credit
G. Credit for Florida Alternative Minimum Tax
H. Special "Corporations"
1. Tax-Exempt Organizations
2. S Corporations
3. Limited Liability Companies
a. Revenue Ruling 88-76
b. The "Check-The-Box" Regulations and Florida's Response
I. Entertainment Industry Reimbursements
2000.08. INSTALLMENT SALES
B. Distortion Caused by Changes in Apportionment Fraction
C. Impact on Sales Factor
2000.09. FRANCHISE TAX ON FINANCIAL INSTITUTIONS
A. Taxation of Financial Institutions, Generally
B. Definition of Financial Institutions
C. Taxable Entities
D. Tax Base and Rate
E. Deductions and Credits
F. Inclusion of Federal Obligations in Tax Base
G. Other Taxes Applicable to Financial Institutions
Working Papers
Item Description Sheet
Worksheet 1 Florida Department of Revenue Contact List
Worksheet 2 BNA 2008 Survey of State Tax Departments: Florida Questionnaire
Worksheet 3 Interest Rates on Overpayments and Underpayments
Bibliography