If you are a business owner in Texas, you probably use some privately owned property to help you run your business. Bringing in a few pieces of your own equipment to help around the shop or office is convenient, and it makes sense for you to do it to save some of your budget in the end. It is so common for business owners to do this that state and local governments decided to find a way to make money off it, and instituted what is known as business personal property taxes.
What sort of personal property that I use can be taxed?
In most cases, your business personal property will be self-assessed by you, the owner, every year you are in business. You will have to know the original value of the item, when it was purchased or acquired, and what type of property it is. Some of the most commonly reported pieces of business personal property includes:
- Computers and printers
- Furniture pieces or sets
- Mobile phones for company use
- Tools and machinery
- Cash registers and other equipment
Depending on your type of business, you might even be taxed on small purchases, such as office supplies. However, in most states, this is covered by state-level sales tax.
How do issues with business personal property taxes arise?
In many cases, business owners run into issues with business personal property taxes due to the fact that they are based on self-assessments. While this is surely convenient, it leaves the door wide open for mistakes for which you will ultimately be responsible. If the amount you report is suspicious or deemed inaccurate, you could be facing a state-level audit that is sure to be a headache.
Just like so many other business owners, you are probably too busy to have the free time required to conduct a flawless business personal property tax filing. Errors you could run into include:
- Forgetting to report a significant piece of property
- Listing an item at the wrong value
- Misrepresenting the original year an item was acquired
- Making a mistake on the paperwork associated with filing
If you need help, get help!
There is some good news behind business personal property taxes. When filed properly at the state and local level, you might be able to include them as federal deductions. It all comes down to getting it done right the first time, though. To avoid any issues, both complicated and simple, speak with Houston Business Attorney Patricia M. Davis today. With her 25+ years of legal experience, she is sure to be able to help you through the complications of business personal property taxes!