Understanding Tangible Property Tax Returns
Many states require companies to file yearly tangible property tax returns. Some of these states impose a filing fee, regardless of the assessed amount. Common items to report include:
- Furniture
- Fixtures
- Shelving
- Computers
- Computer auxiliary equipment
- Printers
- Coin-operated vending machines
- Coin-operated washers/dryers
- Tools
Importance of Accurate Filing
These items usually need to be depreciated according to the specific method outlined in the state form you’re using. Failing to file these returns, as required by your local municipality, is a common oversight. Business owners often miss this requirement because they may not be aware that such tax filings exist.
Common Filing Issues
Sometimes, owners only realize their mistake after receiving a notice assessing them for thousands of dollars. The county might have assessed the property at a higher value than its fair market value. In such cases, promptly file an amended return with the correct property value.
In other instances, business owners might not prioritize this filing if they have little or no tangible property. Many states require the return to be filed even if there are no depreciable assets or minimal property.
Tangible Property Tax Returns
Many CPA firms do not specialize in specific local ordinances and tax codes. As a result, finding a qualified CPA to handle this documentation and communicate with the relevant authorities can be challenging. Some firms may charge high fees, even requiring a limited power of attorney.
The tax compliance team at George Dimov CPA can handle these returns efficiently and affordably. Contact us today for a checklist of items needed to prepare your return. Let us manage the paperwork so you can focus on running your business.