The term “Business Property” encompasses a great deal of things. In some states the phrase is used to refer to real estate owned by the Business as a separate entity from the individual or entities directly related thereto. In other states the term refers to real property owned by the Business but used for conducting business. In still other states the term is used to describe any land, structure, buildings, or other improvements owned, occupied, or under constructions which are used for Business purposes.
As described above, the term is broad and covers a wide range of circumstances.
In order to understand what is required in the business property tax agreement, you must first understand that there are certain requirements that must be met by both the Seller and Buyer. This includes a property statement which must include all of the fixtures and equipment owned or leased by the Business. Unless the statement does not include all of the necessary fixtures and equipment the Seller must file an itemized list with the county clerk. The items on the list must be named and detailed and generally provide an inventory of the current condition of each item.
To determine the Market Value of the business property, the County Clerk will need to know the fair market value of the property as determined by a neutral party. The neutral party will use a formula (usually based on recent sales prices) to determine the market value of the property. Once the value is calculated as the business owner will be able to deduct the market value from the income tax it is required to pay.
When it comes to New York City property taxes, many businesses find themselves in a fix if they are not fully aware of the property taxes they are liable for. Because of the high cost of living in New York City, property taxes are one of the highest in the United States. For this reason, property owners must be informed about their obligations. In short, they must be aware of what taxes they are responsible for paying and whether they qualify for any tax credits.
One way for business owners to learn more about their obligation to their community is to consult their local level elected officials. Every local government has a local tax authority. These local level tax representatives often maintain ongoing information and services that can be beneficial to business owners. To get in touch with your local level representatives, visit your local county government website or call the New York City Economic Development Corporation (NYCEDC). Each of these offices has a list of direct phone numbers and contact persons for questions regarding the business property tax.
For individuals, a good tax professional can be helpful in preparing all of your income tax documents.
A tax professional can also help you prepare your business property tax forms and help you understand what deductions you may be eligible to take. There are many individual state tax forms available to purchase online. In most cases, these forms are free but you may need to download the forms and fill them out by hand. A tax professional can advise you on which forms you will need to fill out and how to complete them correctly. If you choose to file electronically, a good tax professional can help you find the software necessary to file your documents online.
- Another way to reduce your local tax obligations is by increasing your business overhead.
- For example, if you buy a new vehicle, you can deduct the cost of the car as a business property tax deduction.
- You can also deduct other expenses related to operating your business such as utilities and internet access.
All businesses should be proactive in seeking any opportunities available to reduce their local tax obligations.
One resource that should be explored is tax software. Tax software helps business owners manage their business and personal taxes by managing them on a single centralized location. This makes filing taxes quick and easy. One of the best features of tax software is that it makes reworking for deductions easy because it keeps track of changes to laws and regulations that can affect your deductions. Look for software that includes a large variety of options such as depreciation analysis tools and financial reporting tools that allow you to keep up with your business’s ever-changing tax obligations.