What is personal property?
All property that is not characterized or taxed as “real estate” or “real property” is considered to be a PERSONAL PROPERTY. Business personal property includes everything from pens and other small items to computers and manufacturing equipment. It is available whether it is claimed, rented, leased, lent, or in any case made available to the business.
Who Must File A Business Personal Property Listing?
Everyone who owns equipment used in a business must complete a personal property listing by April 30 each year. The listing must include a description of the equipment, its cost, and the acquisition year. The completion of a listing is required of all individuals, partnerships, corporations and associations who on January 1 own, control or possess any amount of leasehold improvements or personal property (tangible) utilized or held for a business reason.
When and Where Does a Business Owner List?
The business personal property listing must be filed on or before January 31. The owner can submit the list online or by mail. Listing submitted via mail will be considered to be documented as of the date appeared on the stamp attached by the U.S. Postal Service. If the date does not appear on the stamp or if the stamp is not attached by the U.S. Postal Service, the posting will be considered to be documented. All late recorded postings will be subject to a 10% penalty.
Types Of Business Personal Property:
- Tangible personal property
- Intangible personal property
Intangible personal property:
Intangible personal property means all property owned or possessed by the contributor and used in the connection with the ownership, leasing, occupancy or maintenance of the property. Intangible personal property has no intrinsic value but it is an evidence of value.
Copyrights, royalties, patents, personal service contracts, installment obligations, life insurance and annuity contracts.
Tangible personal property:
Tangible personal property means all property that can be moved or touched, and most commonly includes items such as business furniture and equipment. It is different from real property or real estate that has a permanent location. It also differs from intangible personal property, which can’t be touched, such as financial accounts, copyrights, and patents.
- Office furniture, supplies and devices
- Tools and equipment
- Vehicles and machinery
- Inventory and parts
Enroll today and show your potential tax savings:
Did you know, you can reduce your Business Personal Property Tax (BPP) by 40 to 50% and save thousands. Enroll today in the Business Personal Property program and get to know your potential tax savings.