Personal tangible property is a tax term referring to physical property used in running your commercial or rental business. While general property taxes concern the actual land and buildings, personal tangible property taxes are related to equipment, furnishings, vehicles and more. If you own a business or rental property, it's important to understand how these taxes work. Here is some basic info to know:
Tangible personal property is any asset used for your rental or commercial business. To qualify as tangible personal property, the assets must have a physical existence. Therefore, important assets like copyrights or patents do not count. Here are some examples of common forms of tangible personal property:
Some other examples of tangible personal property can include:
Tangible personal property is taxed in a similar way to land or building property. Landlords and companies must determine the value of their business assets and report them in a separate tax return. Depending on the state, the value might be dependent on the purchase price, assessed value or appraisal. Assets are taxed based on a percentage of their value. Depending on the asset, you may have to pay taxes on personal tangible property annually or only once.
If you're a property or business owner, it's important to be aware of what qualifies as personal tangible property. If you're not sure if your assets qualify, you can consult with your local tax authority to find out the specific requirements of your state and municipality.
Beth is a Michigan native, who was born and raised in the Kalamazoo area and had former residences in Vicksburg, Dearborn Heights, Grosse Pointe, and Portage. Additionally, she has lived in Illinois, the Philippines, California, and Colorado. As a resident of Clarkston for over 15 years, Beth really knows the local area and is very knowledgeable of Metropolitan Detroit market. With a second home in Harbor Springs, she is familiar with the Little Traverse Bay real estate market as well.
