Tax Planning Strategies Business Owners Need to Know

It’s easy to assume that anything labeled “personal tax” pertains to taxes only you, as an individual, are obligated to pay. But in reality, personal property taxes can include items owned by a business, too. Referred to as business personal property taxthis is levied on items you use in the course of conducting business — things like office furniture, equipment, tools, computers, fixtures, phones, cash registers, and any other unit you might own that’s worth $500 or more. Let us help with our business tax planning strategies.

Business Personal Property Tax Basics

The business personal property tax, like those imposed on any real estate you hold, is imposed by your local government at the county level. It is not a federal or state tax.

The amount you pay for this tax depends on your property’s physical location, as well as its appraised value. To determine this value, you must file what’s called a “rendition” with your local appraisal district. This simple form requires basic info about your property, including your name, address, a description of the property, its current physical location, the quantity of your property, and more. If your item is of particularly high value, you may need to submit a receipt or a good faith estimate for it.

Once you file your rendition, the district will assign an appraiser to your case. They’ll use the information you provide, along with current local and market data, to determine an accurate value of your property. Then you’ll pay taxes on the total value of your properties.

Business owners who fail to file a rendition — or to do so on time — may be subject to fines from the county. Often, these fines can cost much more than the original tax! In serious cases, your local government may even seize property if taxes aren’t paid.

Don’t Take the Chance - Get the Best Business Tax Planning Strategies

As a business owner, you have enough to handle without worrying about how much you owe in business personal property taxes or the potential backlash should you forget to file or pay them. We can help. We’ll safeguard your business and your hard-earned cash — and maybe even lower the amount of taxes you owe in the first place. Get the best business tax planning strategies – whether you’re a small or large business. Call us now at 512-833-5829 to learn more, or get started now.

Five Stone Tax
by Five Stone Tax

Five Stone Tax is America’s trusted tax adviser, offering full-service tax solutions with the goal of making sure all of our clients pay the lowest amount of taxes legally possible. As the most effective tax representation company in America, our team consists of the best Property Tax Consultants, Tax Attorneys, Enrolled Agents, case managers, and administrators in the industry.

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