CPA for Orlando, FL Clients: Remote Tax Help for Rentals and Small Business

We are a Naperville, Illinois CPA firm, and we serve clients in Orlando, Kissimmee and the rest of Orange and Seminole counties remotely. We have no office in Florida. Tourism shapes the tax questions here: a spare condo rented by the week, a motel, a restaurant with tipped staff. This page covers those, and leaves Florida's property tax calendar and homestead rules to our Tampa Bay page and the Florida state guide.

Florida income tax and Orlando rental income

Florida has no personal income tax, so the return that matters for an Orlando rental is the federal one. IRS Publication 925 says a rental activity is generally passive even if you take part in it, unless you qualify as a real estate professional. It also says an activity is not a rental activity if the average period of customer use is 7 days or less, or 30 days or less when you provide significant personal services. A condo rented by the week can therefore land on either side of that line, and the answer changes how losses are treated.

Short-term rentals: four layers to check

Tourist development tax. Orange County's rate has been 6% since September 1, 2006, and it applies to rentals of six months or less. Whoever collects the rent from the guest must collect it, owner or not. The Comptroller's FAQ says returns are due on the first of the month after collection, are late if not postmarked by the 20th, and must be filed every month even when no tax was collected. A collection allowance of 2.5% of the first $1,200 collected, up to $30, requires electronic filing and payment on time. Owners remain responsible if a property manager fails to remit. Seminole County's tax is 5%, due to its Tax Collector by the 20th, with a penalty of 10% per late month up to 50% and a $50 minimum.

State sales tax. The Department of Revenue says the 6% state sales tax and any county surtax apply to these rentals and go on Form DR-15 (Line D, transient rentals), separately from the local tax. The 2026 surtax is 0.5% in Orange and 1% in Seminole.

Zoning and registration. The City of Orlando allows home sharing only if the resident lives on site; the first-year registration fee is $275. Its page says renting a whole property is classed as a commercial dwelling unit, limited to certain zoning districts, and needs a business tax receipt. It also says only about four percent of Orange County is zoned for short-term rentals. Check zoning before you buy.

Size of the market. The Comptroller reported $33,557,300 of Orange County tourist development tax for June 2026, down 0.4% from June 2025, after 14 straight months of record collections.

Business tax receipts and property returns

Florida law makes local business tax receipts due by September 30 each year, with a penalty of 10% for October and 5% more for each later month, capped at 25%. Operating without a required receipt adds a 25% penalty. Orlando's page adds a $250 penalty from February 1. Its receipts expire September 30, invoices go out by July 1, and payment is due October 1. A yearly declaration, emailed in April, is due June 1 from all businesses other than professionals, with a 25% penalty if it is missed. For a home-based business, the city charges a $50 processing fee. Seminole's Tax Collector says rental owners who rent independently, or through platforms other than Airbnb, HomeAway or VRBO, need a business tax receipt.

Furniture and equipment in a rental or business are tangible personal property. The Department of Revenue says anyone who owns such property on January 1 must file Form DR-405 with the property appraiser by April 1, and that this includes anyone with a proprietorship, partnership or corporation, or who leases, lends or rents property. Not filing carries a penalty of 25% of the tax; filing late costs 5% a month, up to 25%. Filing on time earns an exemption of up to $25,000.

A rental bought as an investment does not get homestead protection. For non-school taxes, a non-homestead property's assessed value cannot rise more than 10% a year, and ownership changes reset it to market value. Amendment 3 on the November 3, 2026 ballot would lower that cap to 5%; see our Tampa page for the other changes it proposes.

Hospitality employers and workers

For 2025 through 2028, employees and self-employed people in occupations that customarily receive tips may deduct up to $25,000 of qualified tips, phased out above $150,000 of modified adjusted gross income ($300,000 joint). Married couples must file jointly to claim it, and employers must report cash tips and occupation. See tips and overtime reporting. Reemployment tax details are on our Florida page.

The Indian-American community and US-India tax in Orlando

The Census Bureau counts 5,522 Asian Indian residents in the city of Orlando (1.7%), 29,264 in Orange County and 10,170 in Seminole County. The Consulate General of India in Atlanta covers Florida and lists visa, passport, OCI and miscellaneous services. Common issues:

• Owning a vacation home from India. IRS Publication 519 says a nonresident alien's U.S. rent is taxed at 30% (or a lower treaty rate), unless the owner chooses to treat it as effectively connected income, after which net income is taxed at graduated rates on Form 1040-NR. See NRIs investing in US real estate.
• Motels and hospitality. See convenience stores, gas stations and motels.
• Foreign accounts. An FBAR is due when foreign accounts exceed $10,000 at any time; see FBAR.
• Selling in India. See selling property in India.

How we can help

From Naperville we prepare federal returns, rental schedules and part-year returns, set up payroll and bookkeeping, and review notices from the IRS or Florida. Work is by secure upload, phone and video. For zoning, licensing or a county hearing that needs a local professional or a Florida license, we will say so. This is general information, not personal advice.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.