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Subject Author Date
Questions on Property Tax Will 05-01-2008
Posted by Will on May 1, 2008, 7:53 pm
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 I have two questions regarding property tax. We are a California based
business, but I hope the answer will not be significantly different across
different locations.

First, when a fixed asset is purchased that has sales tax added to the
invoice, is the sales tax considered part of the "value" of the asset that
depreciates over time, and should the full sales tax amount be added into
the asset value for property tax purposes?

Second, when a fixed asset has no sales tax added, but you decide that it
should have been taxed, and you pay the state sales tax authority for "use
tax", should that separate payment for use tax be counted as part of the
asset value, and added to it for depreciation and for property tax purposes?

--
Will



Posted by Paul Thomas on May 1, 2008, 10:11 pm
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>I have two questions regarding property tax. We are a California based
>business, but I hope the answer will not be significantly different across
>different locations.
>
> First, when a fixed asset is purchased that has sales tax added to the
> invoice, is the sales tax considered part of the "value" of the asset that
> depreciates over time,



Yes. So do shipping and installation charges.




> and should the full sales tax amount be added into the asset value for
> property tax purposes?



Yes.



> Second,



You're already had your two..........


Times up.




> when a fixed asset has no sales tax added, but you decide that it should
> have been taxed, and you pay the state sales tax authority for "use tax",
> should that separate payment for use tax be counted as part of the asset
> value, and added to it for depreciation and for property tax purposes?


For depreciation, yes, for property tax value, yes.

That's four questions. I get to bill if there's a fifth.



Generally the business personal property tax report is primarily based on
depreciation schedules. It may also be inclusive of inventory, office and
shop supplies, etc. It is generally exclusive of land and buildings,
vehicles, etc where the tax is computed and paid elsewhere.





--
Paul A. Thomas, CPA
Athens, Georgia



Posted by QBConsultant on May 3, 2008, 10:18 pm
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>
> >I have two questions regarding property tax. =A0 We are a California base=
d
> >business, but I hope the answer will not be significantly different acros=
s
> >different locations.
>
> > First, when a fixed asset is purchased that has sales tax added to the
> > invoice, is the sales tax considered part of the "value" of the asset th=
at
> > depreciates over time,
>
> Yes. =A0So do shipping and installation charges.
>
> > and should the full sales tax amount be added into the asset value for
> > property tax purposes?
>
> Yes.
>
> > Second,
>
> You're already had your two..........
>
> Times up.
>
> > when a fixed asset has no sales tax added, but you decide that it should=

> > have been taxed, and you pay the state sales tax authority for "use tax"=
,
> > should that separate payment for use tax be counted as part of the asset=

> > value, and added to it for depreciation and for property tax purposes?
>
> For depreciation, yes, for property tax value, yes.
>
> That's four questions. =A0 I get to bill if there's a fifth.
>
> Generally the business personal property tax report is primarily based on
> depreciation schedules. =A0It may also be inclusive of inventory, office a=
nd
> shop supplies, etc. =A0It is generally exclusive of land and buildings,
> vehicles, etc where the tax is computed and paid elsewhere.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia

LOL--Good one Paul!

Michelle L. Long, CPA, MBA
Author of: Successful QuickBooks Consulting: The Complete Guide to
Starting and Growing a QuickBooks Consulting Business
http://www.SuccessfulQuickBooksConsulting.com
http://www.amazon.com/Successful-QuickBooks-Consulting-Comprehensive-Startin=
g/dp/1434810690

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