What is personal property?
All property that is not characterized or taxed as “real estate” or “real property” is considered to be a PERSONAL PROPERTY. Business personal property includes everything from pens and other small items to computers and manufacturing equipment. It is available whether it is claimed, rented, leased, lent, or in any case made available to the business.
Who Must File A Business Personal Property Listing?
Everyone who owns equipment used in a business must complete a personal property listing by April 30 each year. The listing must include a description of the equipment, its cost, and the acquisition year. The completion of a listing is required of all individuals, partnerships, corporations and associations who on January 1 own, control or possess any amount of leasehold improvements or personal property (tangible) utilized or held for a business reason.
When and Where Does a Business Owner List?
The business personal property listing must be filed on or before January 31. The owner can submit the list online or by mail. Listing submitted via mail will be considered to be documented as of the date appeared on the stamp attached by the U.S. Postal Service. If the date does not appear on the stamp or if the stamp is not attached by the U.S. Postal Service, the posting will be considered to be documented. All late recorded postings will be subject to a 10% penalty.
Types Of Business Personal Property:
Intangible personal property:
Intangible personal property means all property owned or possessed by the contributor and used in the connection with the ownership, leasing, occupancy or maintenance of the property. Intangible personal property has no intrinsic value but it is an evidence of value.
Copyrights, royalties, patents, personal service contracts, installment obligations, life insurance and annuity contracts.
Tangible personal property:
Tangible personal property means all property that can be moved or touched, and most commonly includes items such as business furniture and equipment. It is different from real property or real estate that has a permanent location. It also differs from intangible personal property, which can't be touched, such as financial accounts, copyrights, and patents.
Enroll today and show your potential tax savings:
Did you know, you can reduce your Business Personal Property Tax (BPP) by 40 to 50% and save thousands. Enroll today in the Business Personal Property program and get to know your potential tax savings.
Commercial real estate software helps in managing the real estate operations conducted by the agents? As a matter of fact, these commercial real estate software are very good in providing real estate solutions depending on the type of property and they are mostly used by managers in the commercial real estate business to handle processes, documents, and managing costs. Wondering which one is fit for you? Read below!
Commercial appraisal software offers many opportunities to grow your efficiency and increase your productivity. There are several companies out there offering innovative solutions to real estate software. Here are several real estate software worth checking out.
1. MRI Software
MRI Commercial Management offers the real estate managers with a perfect customization solution. It helps to maximize the profitability in real estate by improving the investments. It provides a real-time and actionable data that helps the companies manage their assets from a safe and secure platform. This software automates most of the work related to commercial property management in real estate. It is highly configurable and helps to eliminate human errors.
SKYLINE is a commercial real estate software that offers a great solution to agents and for property managers who are looking for an end-to-end solution in the real estate business. It helps the users in financial reporting, comprehensive accounting, tenant and lease management among others. This software is essential in streamlining operations and reporting.
CARS is an appraisal online-software linked to a national commercial real estate database; over 22 million commercial properties. Why is it so much faster? Simple, you start by pulling in subject information. Over 7,000 commercial appraisals were completed on CARS during the first year. Users include both appraisers new to the field and highly experienced appraisers, who were initially skeptical. Reduce time by 50%? It sounds preposterous. But it’s true. And a trial is FREE. No credit card required in this software.
Soft4RealEstate is designed to help the real estate commercial operators manage their households. The software is developed on a Microsoft Dynamics NAV platform, and it works both on-premise deployment, and on web-based models. The application maintains tracks of the tenant's information including turnover paid fees, contract violations all in one prospect database. It automatically calculates the pricing depending on the location of property and penalties for overdue payments. The program assists in separating rent pricing based on the number of buildings, contract details, and other premises. Besides, the tool is a standardized solution for all countries and it comprises multi currency and multi-language features.
If you are new to the world of real estate appraisal software, I hope this gives you an idea of what’s available out there and where to start.
In commercial real estate, there are many tax benefits for investors and owners. In this post, there are top 7 most commonly used tax benefits in the industry, and how to gain advantage of them.
Top 7 Tax Benefits for Commercial Real Estate:
Commercial Mortgage Interest is Tax Deductible
Just like home owners, commercial real estate owners can reduce their commercial mortgage interest from their taxes. In some cases, this deduction is high enough to balance the taxes owed on profits generated by a property. This is particularly true in the case of mortgages with higher interest rates.
Depreciation is a Tax Benefit
The IRS permits investors and owners to claim depreciation as a tax deduction over 39 years for commercial properties.
There are a couple of approaches to use depreciation as a tax benefit. Other than the yearly IRS consent, investors can hire an engineering firm to do a cost depreciation study for more limited timeframes. This allows for higher deductions in the short-term. Bonus depreciation deductions allow investors to benefit even faster.
Keeping up a commercial property tax takes a lot of work. Various costs related with this upkeep are deductible. These expenses can include:
One main thing is that not these costs are qualified for everybody. In this case, with the right advice, investors can likewise deduct operational costs, such as travel to and from a property, hotel expenses, and part of food and beverage costs.
Lower Capital Gains Tax Rate
For those who are planning for retirement, commercial real estate investment brings up some tax benefits over a traditional IRA. IRA gains are taxed at a personal rate when withdrawn. By contrast, the capital gains from the sale of a commercial property are usually taxed at a lower rate.
To gain more advantage of this tax benefit, start investing in commercial real estate to maximize gains at the time of retirement. This would be a great approach for business owners looking for security in assets in the case of business closure.
Qualified Business Income Tax Deduction
In commercial real estate, one of the most exciting things for investors about the Tax Cuts and Jobs Act is Sec 199A. Sec 199A covers the qualified business income (QBI) deduction, a tax deduction of 20% of qualifying income, plus 20% of qualified real estate investment trust (REIT) dividends.
Federal Tax Credits
The U.S. federal government provides numerous tax credit programs which benefit commercial real estate investors. These programs include:
Low-Income Housing Tax Credit (LIHTC)
Historic Tax Credit (HTC)
New Markets Tax Credit (NMTC)
Understandably, each of these programs is designed to benefit specific interests.
Tax Advantages for Commercial Real Estate Losses
While no one wants to think about taking a loss on property, it’s reassuring to realize that there are wellbeing nets set up for commercial real estate investors. Many losses incurred through commercial properties can be claimed as deductions, depending on an investor’s income and whether they work in the industry.
Anyone who owns commercial real estate can obtain these wonderful tax benefits.