If you are a business owner who owns a building, land, or property, you will be probably familiar with business property taxes. In any case, you might be liable for paying business personal property taxes in addition to your other taxes. Read on to learn about the valuations of business personal property.
Why Is Personal Property Valued?
There are a fairly consistent set of reasons people require valuation of business personal property including:
Accounting / depreciation
Impairment of value
Methods For Valuing Personal Property:
The three primary approaches to valuation are cost, income and the sales comparison approach. These approaches are used for valuing real estate, businesses and personal property.
The cost approach is an appropriate valuation method. It is based on the assumption that the cost of a property should be equal to the cost of building a similar property from scratch.
The income approach is used to value leased property. The income approach simply considers the quantity and quality of the income stream that an asset is expected to deliver.
Sales Comparison Approach
The sales comparison approach for real estate is based upon the hypothesis that it is possible to generate a credible opinion of value based upon reviewing the sales price of similar properties and making adjustments for the differences from the subject property.
3 major mistakes in valuing BPP:
- Using inaccurate depreciation tables
- Taxing on intangible personal property
- Encouraging property owners to include inappropriate costs
Who needs to pay business personal property taxes?
Business personal property taxes vary depending on your locality. Your local tax authority may require you to pay an annual personal property tax in addition to your business property taxes.
Reduce Your Business Personal Property Tax:
You can now reduce your business personal property tax by 40 to 50% and save thousands. You can enroll in the business personal property program that will show your potential tax savings. Thus, enroll today to maximize your efficiency and keep a track of your expenses and business income to streamline your business personal property tax.