Renting Water & Paying Taxes
We live in Virginia, but recently purchased a terrific condo on the water in FL. We will receive 3 mths of rental income (that covers the note and condo fees) in 2004. We incurred roughly $10k in expenses to fix it up to get it ready for rental. Will the income received simply be taxed as ordinary income? How sld I account for the $10k worth of expenses? Do I need to file any Florida tax forms?
Thanks so much for your help. 
In Florida you should be paying intangible taxes in the county the property is in.
As far as your federal income taxes are concerned, the $10K rehab cost is added to your cost basis and recovered through depreciation.
Your accountant can give you specific details.