USA - FLORIDA Law and Practice Contributed by: Jeffrey R Margolis, Marc S Shuster, James L Berger and Evan Rosenberg, Berger Singerman LLP
available only to married couples and does not require express language in the deed to create a right of survivorship between the spouses. Unless the deed provides otherwise, real prop - erty acquired by a husband and wife is generally presumed to be held as tenants by the entirety in Florida. Common practice in Florida is to include the marital status of the spouses in the deed when the spouses intend to create a tenancy by A REIT is a federal income tax classification that allows holders of beneficial interests in a trust to own real estate. REITs offer real estate inves - tors many of the benefits of the corporate form, including limited liability for investors, central - ised management, and a ready market for trans - ferring shares. While taxed at regular corporate income tax rates, a REIT can deduct dividends paid to shareholders if it meets certain qualifications. This deduction effectively eliminates the double taxation (ie, two tiers of income tax) associated with corporations because, with the deduction, income from the REIT is taxable only at the shareholder level. Deductible losses, however, cannot be passed through to shareholders. Dividends paid by a REIT constitute either ordi - nary dividends, which are attributable to oper - ating or active business income, or capital gain dividends, which are attributable gains realised by the REIT on the sale of its investment assets. REIT shareholders report and pay tax on their share of the REIT’s taxable income and gains. Both US and non-US individual investors are eli - gible for the long-term capital gains rate on their allocable share of long-term capital gains of the REIT. Non-US investors are subject to statutory the entirety. 5.3 REITs
withholding with respect to their share of both ordinary dividends and capital gain dividends. 5.4 Minimum Capital Requirement There is no minimum capital required in the state of Florida. 5.5 Applicable Governance Requirements An LLC is typically classified as either “mem - ber-managed” or “manager-managed”, with the applicable classification defining and providing the power and authority to govern the company. An LLC may choose – but is not required – to implement a governing body to act subject to member control and with supervisory authority over any appointed officers. An LLC structure is flexible in establishing protocols for any meet - ings of members and/or managers. General partners have the exclusive power and authority to govern and manage a limited part - nership (including an LLP). A limited partnership structure is also flexible in establishing protocols for any meetings of partners. 5.6 Annual Entity Maintenance and Accounting Compliance Please seek guidance from an accounting pro - fessional. 6. Commercial Leases 6.1 Types of Arrangements Allowing the Use of Real Estate for a Limited Period of Time In Florida, a person or entity can occupy and use real estate for a limited period without buying it outright by leasing the real estate or obtaining a licence to use it. There are differences between
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