File your business Tangible Personal Property Tax Return by April 1 2023.
Additionally, businesses with tangible personal property assets are required to file a timely return in order to qualify for an exemption of up to $25,000.
What is Personal Property?
Tangible Personal Property is any goods and other equipment or furnishings owned by and /or used for a business purpose. This includes equipment personally owned, fully depreciated, or written off for Internal Revenue Service’s purposes. Any assets reported on IRS form 4562 along with Section 179 assets are considered Tangible Personal Property.
Some examples of Tangible Personal Property include but are not limited to: computer equipment, security equipment, office equipment, and furniture, fixtures. Also, medical, dental, manufacturing equipment, capital leases, signage and leasehold improvements.
Class 94 vehicles (vehicles registered as a tool & not as transport) are Tangible Personal Property. Vehicles not registered as Class 94 (tool) may have equipment attached such as air compressors, power cranes, and tool boxes that are considered Tangible Personal Property.
The filing deadline for Tangible Personal Property returns is April 1st of each year.
Business Tax Return Preparation of Tangible Property Taxes
It is important to note that all businesses are required to file a Tangible Personal Property Tax Return (Form DR 405) if you own personal property. You should hire a tax preparer for peace of mind and to ensure you accurately reflect the assets utilized by the business.
Our firm can assist you identifying all assets, estimate the fair market value, and prepare the depreciation schedule. In addition, we can complete your business tax return. Moreover, we will keep timely, accurate records if you sell your business, go out of business, or move to a new location.