It is obvious that as a business owner you may have come across the term business personal property tax for quite a few times. But do you have any idea that what it is and which are included in this or how to calculate this tax? Well if you are still lacking in thorough knowledge about California business property tax then it’s high time for you to get the essential information about it as already the California commercial property tax assessments are sent out to the business owners and soon you need to fill and submit them same. But before submitting your assessment form it is essential for you to understand that which properties can be included in it and how to calculate the tax and so on. Let’s dig deep and learn more about it in the following sections.

What you should know about it?

Business property tax in California is almost same like any other states of the Unites States of America. This tax is implied to people who own a business and use commercial or individual properties for the business purposes. So if you are also using own any of them and using it for your business then learn more about this tax to make your life easier.

Kinds of properties

The assets that you own and use for commercial purposes can be included for calculating the business property tax. But not only land building or car or furniture only should be included in this list but there are more assets that can also be categorized as taxable. As per the tax law there are two types of assets classes that can be considered for the property tax purposes. First one is tangible assets like building, land, furniture, machinery, computer, phones and so on. On the other hand there are some assets that you can see but they also yield some value and can be used in the business like bonds, debentures, royalty agreements, patents, goodwill and insurance and so on. Thus at the time of calculation the commercial property tax you need to take both tangible and intangible class of assets duly.    

The deductions and section 179

All the assets that can be used for business some of them can be used for a year or less whereas some can be used for several years to come. So you need to decide that on which assets you need to take the deductions immediately on that year only and on which you will charge depreciation over the years or include them in the section 179 of the internal revenue code. So based on the use and asset class you need to divide your assets properly so that you can calculate the tax and deductions properly and can maximize your deductions.

Calculating and submitting return

In order to calculate the return of your business personal or commercial property tax first you need to gather the information about your assts that you are using in your business. Managing your asset information is vital as it can help you to fill the form specified by the authority. After that you need to ascertain the value of your properties and based on the tenure of use you need to calculate the depreciation and deductions appropriately. The tax rate can be different on different states so you need to know that what will be the tax rate and based on that calculate the tax on each and every asset separately.

When you are done with these steps then you need to download the form available on the website and fill up the form properly and show the deductions and depreciations to get the tax value. For this processes you can take the help of an expert also.

By Richard