September Tax Deadlines & Key Updates You Shouldn’t Miss

Dear Client,

We hope you are doing well. As we move through September, there are several important tax deadlines and regulatory updates that may affect you or your business. Please review the following and reach out if you need assistance to ensure timely compliance.

Starting October 1, 2025, Florida will no longer impose sales tax on commercial rental properties. This means businesses renting office space, retail shops, warehouses, or self-storage units will not pay state sales tax or discretionary surtax for rental periods beginning on or after that date.

However, there are some important details to keep in mind:

• Rent through September 2025 is still taxable, even if the payment is made after October 1. Example: August 2025 rent paid in October remains subject to sales tax.

• Rent for October 2025 and later is not taxable, even if it’s prepaid before October.

• Landlords must continue filing returns through their last taxable reporting period (monthly, quarterly, semiannual, or annual, depending on filing status).

• Refunds are available if sales tax was mistakenly collected on post-October 1 rent, but landlords must refund tenants before requesting reimbursement from the Department of Revenue.

• The repeal does not affect transient rentals (six months or less), parking garages/lots, boat slips, or aircraft tie-downs; these remain taxable.

• The Florida Tax Credit Scholarship Program will no longer issue new credit allocations tied to commercial rentals after July 1, 2025.

This change represents significant savings for Florida businesses leasing commercial space. If you are a landlord or tenant and want guidance on how these changes affect your lease, tax filings, or refund options, SK Financial CPA can help.

• Provisional income = ½ Social Security benefits + tax-exempt interest + other income.

• Taxable benefits are calculated using the amount before Medicare premiums (Box 5 of SSA-1099).

• To have taxes withheld, file Form W-4V (choose 7%, 10%, 12%, or 22%).

The new law allows losses from state-declared disasters to be deducted the same way as federal ones. For disasters starting on or before July 4, 2025, taxpayers can claim these losses without itemizing, using only a $500 threshold and avoiding the 10% AGI limit.

Taxpayers also have flexibility: they can apply disaster losses to either their 2024 or 2025 tax returns, and those who already filed 2024 may choose to amend their return. In addition, the IRS can now provide faster deadline extensions once a governor declares a disaster or emergency.

• What is portability?
  Allows a married decedent’s unused federal estate & gift tax exemption to pass to the surviving spouse.

• How to Elect?
  File Form 706 (Estate Tax Return) on time, even if the estate isn’t otherwise required to file.

• Filing Thresholds

  • 2025 deaths: $13.99M exemption

  • 2026 deaths: $15M exemption

• Small Estate Relief
  Estates not required to file can still elect portability by filing Form 706 within 5 years of death.

• Special Filing Note
  Must include the statement “Filed Pursuant to Rev. Proc. 2022-32 to Elect Portability Under Section 2010(c)(5)(A).”

• Missed Deadline
  Estates that miss the 5-year deadline may seek a private letter ruling from the IRS.

The IRS has eased filing requirements. Partnerships and S corporations with little or no foreign activity no longer need to file Schedules K-2 and K-3. Additional relief applies:

• Partnerships with receipts under $250,000 and assets under $1 million are exempt.

• S corporations with receipts under $250,000 and assets under $250,000 are also exempt.

Donald Trump and GOP lawmakers have proposed making all primary home sale gains tax-free, though it’s unlikely to pass soon. Currently, homeowners can exclude up to $250,000 ($500,000 for joint filers) if they’ve lived in the home 2 of the past 5 years. Critics say a full exemption favors high earners; a more realistic option would be raising or indexing the current limits.

Heavy Highway Vehicle Use Tax (Form 2290) – Key Deadlines

• Tax Period: July 1, 2025 – June 30, 2026

• Filing Deadline: Last day of the month after first highway use (e.g., First use in July → file by Aug. 31, 2025)

• Prorated Tax: Applies if vehicle starts after July

• Low-Mileage Vehicles: File required even if ≤5,000 miles (≤7,500 for farm vehicles); no tax unless limit exceeded

Teachers and school staff working 900+ hours a year can deduct up to $300 in classroom expenses ($600 for joint filers).

Loan forgiveness stays tax-free through 2025. Starting in 2026, forgiven student loans become taxable income unless extended by new law.

Employers can provide up to $5,250/year tax-free for education or loan repayment. From 2026, the limit will be indexed to inflation.

• Paper Refund Checks: Treasury’s September 30 deadline to end paper refund checks will likely be delayed. Refund checks may continue for a while longer.

• Nonprofit Retirement Credits: Small nonprofits could claim up to $5,000 in payroll tax credits when starting employee retirement plans.

• Roth IRA Rules: At age 73+, you must take required minimum distributions (RMDs) before Roth conversions.

• Charitable Deductions: Strict documentation rules apply; missing details can cost you deductions.

• Court & IRS Rulings:

  • Bank of America lost an interest netting case.

  • A Tax Court petition filed one day late was dismissed.

  • A $1.51M settlement for wrongful termination was fully taxable (non-physical damages).

  • Penalties can be waived if taxpayers relied in good faith on qualified advice.

  • IRS only needs penalty approval before issuing a deficiency notice.

• Inflation: July inflation at 2.7%, with core inflation rising to 3.1% from healthcare, housing, and airfare.

• Labor Market: Hiring slowed; revisions show weaker growth between March 2024 and 2025.

• Federal Reserve: Considering a fall rate cut to support jobs while balancing inflation control.

• Lending & Mortgages: Credit remains tight. Assumable mortgages are gaining traction as buyers seek relief from high rates.

• Trade: As of August 29, nearly all imports under $800 lose their tariff exemption, impacting e-commerce shipments.

• Johnson Amendment: IRS settlement lets churches discuss politics during services without violating restrictions.

• Partnership Audit Case: IRS missed its adjustment deadline, making the notice invalid.

Tax rules, filing deadlines, and economic shifts are changing quickly. Staying informed helps you avoid penalties and identify opportunities for savings. Whether it’s meeting September and October filing deadlines, preparing for Florida’s sales tax repeal, or understanding new IRS and market updates, planning ahead is key.