Valuation Of Business Personal Property To Maximize Your Efficiency



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

Casualty loss

Business valuation

Business dissolution

Divorce

Estate taxes

Property taxes


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.


Cost Approach

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. 


Income Approach

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.

Comments

Post a Comment

Popular posts from this blog

STREAMLINE YOUR APPRAISAL PROCESS WITH COMMERCIAL REAL ESTATE APPRAISAL SOFTWARE

Image
  Commercial real estate assessment report writing software (CARS) allows you to streamline your appraisal process. CARS is connected to National data, which can automatically pre fill your appraisal forms with the property data, advanced AI algorithms which recommend comps and comparable maps so on. It helps appraisers to pull market data, analyze comps, and generate different types of customized reports. What you can do with CARS 4 - minute commercial property evaluations; 40 - minute commercial narrative appraisals; and 1 - appraiser can complete 800+ appraisals in one year.  Commercial Assessment Reporting System (CARS) can reduce report prep time by 80%+, Third party data subscriptions are not needed, data and comps are included within the applications. ACCURACY OF CARS: Increases the profit margin of your appraisal firm from 10% to 30% or higher. Licenced appraisers with 25+ years of experience. Reduces report preparation time by 80%. No third party data subscriptions are needed.
Read more

Fort Bend County Residential Values Increase 6.7%

  Property tax assessments for homes were increased by 6.7% for the tax year 2021, based on a review of 85,297 homes valued by the Fort Bend Appraisal District. Homes valued at $1 million or higher had the largest increases, average 8.4% higher than 2020. Review of 85,297 homes valued at $300,000 or indicates an increase in assessed value of $35.6 billion, up 6.6% from $37.9 billion in 2021.  Total property taxes for 2021 for homes valued over $300,000 would total $1036.5 million, based on a 2.7% tax rate before considering homestead exemptions. Fort Bend has 1508 homes valued at $1 million or higher. They are valued at $2.1 billion in 2021, up from $2 billion in 2020. Values were increased for 1,123 homes, reduced for 385 homes, and remained flat for 0 homes. Homes valued at $300,000 to 500,000 increased from $23.1 billion in 2020 to $24.7 billion in 2021, an 6.9% increase. Of the 65,992 in this price range, values were increased for 51,356, reduced for 14,611, and remained flat for 2
Read more