Nationwide business and Tangible personal property tax Consultants
business personal property tax consulting services
Business Tangible Personal Property, also called, “BPP”. Is subject to taxation dependent on what state it is located in, also called, “Situs”, on your states’ property tax assessment date, or, “Lien Date”. Business Tangible Personal Property is any property you own that is used for business purposes.
ITC will identify underutilized, obsolete, and ghost assets to ensure your personal property correctly classified and appraised.
Understanding your Business Personal Property
Business Personal Property (BPP): includes tangible assets such as your: furniture and fixtures, machinery and equipment, leasehold improvement, computers, vehicles, inventory, and raw materials.
Furniture and Fixtures
There exist a tremendous opportunity to help our clients achieve significant property tax relief on their business tangible personal property assessments by correctly identifying and then classifying their actual BPP furniture and fixtures, from parts of their real estate. Many times when the appraisal districts use mass appraisal techniques and methods, they overlook this and will incorrectly assess and classify parts of your real estate as tangible assets.
In such cases, ITC can utilize its long-standing relationships and credibility with the local assessors to informally address these issues before having to go before the appraisal review board. We take a proactive approach to ensure we minimize any possibility of real estate being assessed as business tangible personal property. We do this by having our property tax compliance specialist do an in-depth fixed asset analysis and classification audit before filing any annual returns for property tax purposes.
If you need help on how to classify your business personal property for property tax rendition purposes and ensure that it is separated from your real estate, we can help. Send us an email with your business tangible personal property or inventory assessment question, and we will perform a confidential business personal property audit and show you where you might be incorrectly assessed.
It is important to be sure that you have a clear understanding of which vehicles are used, and for what purposes.
Business Personal Property includes not only fixed assets used for the production of income but inventory as well. You are required to file a personal property rendition to the appraisal district or taxing jurisdiction in which your inventory has situs. A rendition is a form that provides information about the property that you own. The appraisal district uses the information you provide to appraise your property for taxation. This rendition includes things like the: assets description, location “Situs” as of the assessment date, date of acquisition, and your costs. You also have the option to render a “good faith” estimate of the market value of your business tangible personal property and inventory.
It is important to realize that your purchase costs do not always equal the current value of your business personal property and inventory on the assessment. There are many business personal property valuation strategies that you can apply to your business personal property and inventory to ensure it is assessed at market value.
Our team of personal property valuation specialists and senior appraisers are backed by over 40 years of personal property valuation experience both from private contracting appraisal firms, and private property tax consulting firms. We ensure that all types of obsolescence are accounted for on your business personal property and that if applicable for your state and appraisal district, that a Freeport and Goods in Transit exemption is applied to your inventory.
As a result, we certify that all of your business tangible personal property assets and inventory are correctly identified, classified, and exempt, before preparing and filing your business personal property renditions and returns. All while ensuring that the different types of economic, functional, and technological obsolescence are accounted for on your business personal property prior to authorizing the filing of your business personal property returns.
Need help with your business personal property or inventory assessment? Give us a call, and we can do a free, confidential fixed asset, and property tax assessment review of your business tangible personal property fixed assets and inventory.
Leasehold improvements are enhancements to a leased space that are paid for by a tenant. For example, an interior improvement such as the addition of built-in cabinetry, electrical additions or carpeting.
This can create over assessments when the leaseholds are items that are clearly taxed as real property (landscaping, parking lots, dock improvements, and carpeting) and may be repairs that add little or no new value to the real estate.
Reporting leasehold improvement for the purpose of property taxes is an area where we see clients struggle prior to partnering with Industrial Tax Consulting (ITC).
Ask our business personal property tax specialists your questions about your business and tangible personal property tax assessments or inventory questions.
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