What is the difference between property tax and tangible personal property tax? While property taxes are commonly understood as payments on your home or land, tangible personal property is a less common term used in real estate. Referring to physical objects other than the literal land or building, personal tangible property is important in commercial and rental businesses. Here is the basic info to know about personal tangible property and associated taxes:
Tangible personal property examples
Some examples of business assets qualifying as tangible personal property include:
- furniture
- production machinery
- computers
- delivery vehicles
Individuals and households may have personal tangible property such as:
- jewelry
- collectibles
- sports & hobby equipment
You can think of tangible personal property as anything of value with physical existence. Other assets, such as patents and copyrights, do not count as tangible personal property as they are not literally tangible.
How tangible personal property taxes work
Similar to regular property taxes, personal tangible property taxes are based on a percentage of either the asset's sale price or assessed value. Landlords and businesses have to report these assets on a tax return, as long as they are related to a business. Taxes are paid to the local government, and in some cases can qualify for tax deductions on federal income tax returns.
Understanding personal tangible property taxes is crucial if you're planning on investing in a commercial or rental property. Keep this basic info in mind when considering your next move in real estate investment.
About the Author
Janie Schriewer
Welcome to the Janie Schriewer & Associates at RE/MAX Results. Janie just wrapped up her 30th year in the business & over that time has been adapting to the always-evolving Real Estate industry. In recent years she has added 2 members: Her Son Derek—Licensed Buyer & Technology Specialist, and Buyers' associate Melissa Kelley. We are all full-service REALTORS who can assist with selling your home and/or finding you your next home. The added professionals mean potential Clients have more convenience for showings & direct communication with Franklin County areas real estate Leaders.
Communication is crucial in Real Estate & Janie leads by example for our team as she prides herself on availability to her clients. Whether you prefer texting, phone calls, emails, or instant messaging, Janie Schriewer & Associates can accommodate. Whenever you want to talk to us or work with a REALTOR, the Schriewer’s have the experience & care to offer the right advice for your situation. We know the intricacies of negotiating a deal from the original offer to the signatures at closing as well as alleviating all of the hurdles that may arise in between. We treat you just like family. We care about you and what is best for you. Call Us today. Thank you as always for friends, past clients and customers we love referrals. Talk to you soon.