QUESTIONS ABOUT CORPORATE TAXES


In this section we answer corporate tax questions that we often hear.
It’s not a forum for getting detailed advice but it answers some common questions that we’ve categorized into our six service areas. Select one of the six service icons to see questions in that category.

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PROPERTY TAX

Everyone who owns a house is familiar with real property taxes but many new businesses are unaware of something called personal property taxes.

Personal property taxes, unlike real property taxes are on unsecured assets. Unsecured assets are things that you can pick up and move – like furniture, computers.

Businesses are required to report their unsecured property tax on a cost basis. So furniture, computers, even things like supplies can actually be subject to personal property taxes.

Counties are really starting to ramp up audit activity on things of this nature.

Property taxes are assessed based on the property on hand as of a lien date, typically January 1st.

They are typically collected by county tax collectors based on an inventory of taxable assets in the county on the lien date.

For purchased assets…assessed value equals cost. For self-produced assets…it depends. The assessor’s office will apply their own depreciation computations to arrive at an assessable value.

If you have self-constructed depreciable property, consider engaging a professional to assist with reporting.

Because many businesses self-prepare their property tax returns without the requisite knowledge of the requirements, property tax professionals operating on a contingent fee basis are able to receive significant refunds with a modicum of effort.

VPTax will educate you on proper reporting or prepare proper returns for you possibly resulting in a lower tax liability; cutting out the contingent fee “advisors”.