Understanding the definition of business personal property is an important step to covering all of your risk. These personal items consist of fixed assets. Items like equipment, machinery, materials, electronic tools, ropes, ladders, tools, mowers, massage tables, desks, chairs, computers, furniture and or other items that are considered to be personal property and owned by and insured individual. Insurance companies usually offer a limited protection for this type of policy. Check with your insurance agent to see what type of business personal property coverage you can get for personal items.
Do you know what taxes are associated with business personal property tax? This property tax is a mild tax on items that are considered fixed assets. You can find items in your home like a refrigerator, furniture, fixtures, and tools that you might use for your small business to be considered items that can be taxed as personal property. In many states the majority of all business personal property is to be taxed for the duration of the property no matter how old the fixed asset. Your desk could be brand new or 20 years old, the state still wants to receive their tax revenue. You need to remember that property is taxable for items that are still depreciating or items that have been given to you at no cost. You will be assessed for these taxes on your annual tax return.
Be sure you have a list of all your business personal property written down so it is easy for you to figure out your taxable situation. A well put together fixed asset list with all of your assets, a detailed description, and the exact year that you starting using the asset. Every business should produce copies of all the filing information annually, while maintaining the current list of changes, purchases, or items that have been recently sold. Business personal property taxes can include such things that have been purchased to use for your business. Make sure you understand what these taxable assets are or be sure to ask your CPA what exactly this tax is made up of.