Knowledge Hub
Security Deposits
Florida security deposit rules — collection, storage, deductions, and return requirements under Florida law.
Knowledge Base Terms
Passive Activity Loss
Tax losses from rental properties that may be limited by the IRS when offsetting other forms of income.
Schedule E
The IRS tax form used by rental property owners to report income and expenses for their real estate activities.
Tax Basis
The original cost of a property used to determine gain or loss for tax purposes when the property is sold.
Taxable Disposition
A taxable disposition occurs when an asset is sold or exchanged, triggering a taxable gain or loss for the owner.
Loan Deficiency
A loan deficiency is the remaining balance due on a mortgage after a property is sold for less than the total debt owed.
Capital Loss
A capital loss occurs when an investment asset is sold for less than its adjusted cost basis.
Net Investment Income Tax (NIIT)
The NIIT is a 3.8% tax on investment income for high-income earners exceeding specific threshold levels.
Tenant Estoppel
A legal document where a tenant confirms the status of their lease and rental payments, often used during property sales.
Guarantor
A guarantor is a person who agrees to be legally responsible for a tenant's financial obligations if they fail to pay.
Prorated Rent
The portion of rent charged for a partial rental period when a tenant moves in or out mid-month.
Passive Income
The original cost of a property plus improvements and minus accumulated depreciation for tax purposes.
Taxable Debt Forgiveness
The IRS considers cancelled or forgiven debt, such as unpaid loans or mortgage write-offs, as taxable income for the recipient.
Installment Sale
Tax liability on the profit from an asset sale that is postponed to a future date.
Portfolio Income
Non-like-kind property or cash received in a 1031 exchange that is subject to immediate taxation.
Capital Gain
The profit you make when selling a property for more than your adjusted basis.
1099-C (Cancellation of Debt)
A form you receive when a lender forgives a debt you owed — which the IRS typically treats as taxable income.
Depreciation Recapture
When you sell a rental property, the IRS taxes the depreciation you claimed over the years as ordinary income.
Step-Up in Basis
A tax provision that adjusts the cost basis of inherited assets to their fair market value at the time of the owner's death.
Ordinary Income
Ordinary income is money earned from wages, business profits, or interest, taxed at standard progressive federal income tax rates.
Earnest Money
A good-faith deposit showing the buyer's commitment to complete the purchase.
Like-Kind Exchange
A like-kind exchange is a tax-deferred transaction allowing investors to swap one business property for another without immediate capital gains taxes.
1031 Exchange
Named after IRC Section 1031, this is the legal mechanism that enables a tax-deferred like-kind property exchange.
Depreciation
A permanent upgrade to a property that increases its value or extends its useful life, rather than just restoring it.
Cost Segregation
The profit realized from the sale of an investment property, calculated as the selling price minus the adjusted basis.
Single-Member LLC
A business structure with one owner that provides limited liability protection and pass-through taxation for rental property owners.
Co-Signer
A person who signs a lease alongside the tenant, assuming legal responsibility for rent payments and damages if the tenant defaults.
Lease Renewal
An agreement to extend the duration of an existing rental contract under either the original or newly negotiated terms.
Notice of Non-Renewal
A formal notification provided by either party stating that the rental agreement will not be extended and the tenant must vacate.
Security Deposit Claim
The formal procedure a landlord must follow to retain a portion or all of a security deposit due to damages or unpaid rent.
Assignment
An assignment occurs when a tenant transfers their entire remaining interest in a lease agreement to a third party.
Addendum
A supplemental document attached to a lease that adds specific terms or modifies the original agreement without rewriting the entire contract.
Security Deposit
Funds held by a landlord to cover potential damages, unpaid rent, or lease violations caused by the tenant during the tenancy.
Walk-Through Inspection
A guided tour of the rental unit at the start and end of a lease to document its condition and identify existing or new damage.
Month-to-Month Tenancy
A rental arrangement that renews automatically each month until either the landlord or tenant provides proper notice to terminate.
Related News
You May Need a Business Tax Receipt
Florida has no statewide landlord business license, but counties and cities levy Local Business Taxes with wildly different rules — Miami-Dade exempts 1–4-unit apartments, Charlotte taxes only short-term rentals, and some cities require a receipt for every single-family rental. Check both the county and the municipality before assuming anything.
City of Jacksonville
The City of Jacksonville and the Sheriff's Office will present a free, full-day Landlord Training Program on Thursday, September 24, 2026, covering applicant screening, crime prevention through environmental design, and eviction procedures involving criminal conduct.
What Renters Want in 2026
According to AppFolio's 2026 Renter Preferences Report shows that renters are more willing to move, but good maintenance, clear communication and a smooth move-in experience can significantly improve retention. The lesson for independent landlords is simple: renters value responsiveness and transparency more than expensive bells and whistles.
When a Tenant Dies
What Florida Landlords Must Do Before Taking Back the Rental
Florida Landlord Network
Today's best tenants expect a modern rental experience with everything right in their phone — rent payments, maintenance requests, lease documents, and communications.
New Florida Law Criminalizes Rental Application Fraud
Effective October 1, 2026, a new Florida law makes it a third-degree felony to provide fraudulent information or forged documents on a residential rental application. This legislation provides landlords with clearer legal grounds to issue a 7-day notice to vacate without an opportunity for the tenant to cure the violation.
From the Blog
Damage or Ordinary Wear?
Florida’s security-deposit statute allows claims for lawful amounts due, but it does not provide a simple chart defining every scratch, stain, nail hole, or worn carpet. The decision turns on the lease, the property’s original condition, the nature and severity of the change, the length and normal use of the tenancy, and reliable evidence.
The Florida Landlord
A good move-out procedure begins before the tenant starts carrying boxes to the truck. The objective is not simply to “check the house.” The landlord must establish the end of possession, preserve evidence, handle the tenant’s money correctly, and return the property to service.
The Florida Landlord
A good move-out procedure begins before the tenant starts carrying boxes to the truck. The objective is not simply to “check the house.” The landlord must establish the end of possession, preserve evidence, handle the tenant’s money correctly, and return the property to service.
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