What are the differences between resident and non-resident taxation?
The difference between resident and non-resident taxation in Florida is significant. A resident is a person who lives in Florida for more than 6 months out of a year. This individual must pay taxes on income earned inside and outside of Florida as well as any gifts, estates, or inheritances. Non-residents, on the other hand, only pay taxes on income earned within the state of Florida. If non-residents receive gifts, estates, or inheritances, they do not have to pay taxes on these items unless the items are related to activities conducted within Florida. In addition, residents of Florida benefit from the federal deductions and credits that apply to taxpayers in the state, while non-residents do not. This means that residents of Florida may be able to save more money on their taxes than non-residents. Finally, Florida taxes capital gains differently for residents and non-residents. Residents of Florida pay capital gains taxes on any gain or loss applicable to the sale of stocks, bonds, and other investments while non-residents are only taxed on gains from the sale of investments located in the state of Florida. In conclusion, the difference between resident and non-resident taxation in Florida is significant. Residents are subject to more taxes than non-residents, as well as other deductions and credits that only apply to residents. Additionally, capital gains taxes are also different for residents and non-residents.
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