I was not able to write for the last three weeks due to a technical problem with my newsletter website. Now we are back with the most frequent question I received last week. This is about the requirement to file Tangible Personal Property Tax Return (Form DR-405).

What is a Tangible Personal Property (TPP)?

TPP can be defined as all goods other that real estate that has value by itself. In other words any asset you have in your office.

Why must I file a return?

Florida Statute 1093.052 requires that all TPP be reported each year to the Property Appraiser’s Office. If you receive a return, it is because the office of the Appraiser’s has determined that you may have property to report.

Who must file a TPP tax return DR-405?

Anyone in business as of January 1 must file a TPP DR-405 tax return yearly.

Is there a minimum value that I do not have to report?

No. A DR-405 tax return must be filed on all assets by April 1st. After mailing a DR-405 the first year in business, if the business has less than $25,000 a waiver will be issued by Property Appraiser’s Office.

Are there deadline and penalties?

The deadline is April 1st.  The penalties for failure to file a return is 25% of the total tax levied against the property for each year that no return is filed; for filing after the due date, 5% of the total tax levied against the property covered by that return for each year, for each month, or portion thereof, that a return is filed after the due date, but not to exceed 25% of the total tax.

If you need any assistance in preparing this tax return, please call me at (305) 443-1068.

Have a great week!!!

Julio Jiron, CPA

Written by: Julio Jiron, CPA

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