Property Taxes On Equiptment

Discussion in 'Business Operations' started by supercuts, Feb 15, 2007.

  1. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,814

    Hello, how many of you have a LCO run out of you home and pay property taxes on your business equiptment other than trucks, trailers, etc. have any of you been hit with fines or late fees for not paying taxes on them?? any information is appreciated, not sure what to ask on this subject so any comments are great.

  2. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,814

    any takers?
  3. tthomass

    tthomass LawnSite Gold Member
    from N. VA
    Messages: 3,498

    I am having to file property taxes......I've heard from people that county wants to know everything. Tax you on your trucks etc down to pen and paper. Now, this may be wrong but screw them, I'm not reporting a Bic or paper clip that I bought last week.

    Now, if I leave out things like $500 saws and blowers........I don't think they would be too happy. Hand tools I'll gather a total # and there it is. Can I total in my pens and paper with that, sure......will I? Prob not. Will I report $500 saws and blowers, sure. Are they going to come knocking on my door looking for that Bic, no.
  4. Jason Rose

    Jason Rose LawnSite Fanatic
    Messages: 5,858

    Screw-em. It's perfectly legal to own all this same equipment and use it for personal use and NOT pay ANY personal property taxes on it, other than tagged things like vehicles. But they figure that since it's "something used to earn money" they deserve a share. No way.

    They have NO way to proove that anything on your property is used in your business or not. They can't come onto your property and start adding up mowers and equipment. The only way they can get the information is if YOU GIVE IT TO THEM. My thoughts: You use your truck, that's already taxed, and 1 push mower and a broom. Value: $200. Tax that. Everything else you have is for your personal use on your own property.

    GELAWNS LawnSite Member
    Messages: 66

    We are set up as an S-Corp. All equipment listed as an asset on the balance sheet is taxed by the county. We list everything over $300.00 and we depreciate it at the end of the year. The depreciation credit each year is more than the county taxes, which is also an expense to the business.
  6. txgrassguy

    txgrassguy LawnSite Gold Member
    Messages: 3,083

    Here in Texas certain counties are trying to franchise tax small businesses and one way is through equipment.
    I way I look at it, I already pay enough taxes.
    Sales tax on the equipment, tax on the fuel, licenses for my business, taxes on my expendable supplies, taxes on repair parts.
    At this time I do not anticipate my county requiring more taxes from me.
    However, if they do then all my customers will see a price increase!
  7. Total.Lawn.Care

    Total.Lawn.Care LawnSite Senior Member
    Messages: 840

    GA want you to provide your asset listings to them. I list all of my equipment seperate from my vehicles and trailers. My vehicles and trailers are already taxed because they have tags on them. I fill in the current values of my equipment on the asset schedule, send a copy of it in with the return and wait for the bill. I also, check the assessment notice to be sure that they are assessing me correctly based on the value of assets I sent them.

    Like above, I only list the larger stuff, not every little $50 tool or attachment that I purchase. Trimmers, Saws, blowers, etc. I recently got several Stihl items from Ebay, and I did nto list any of it on the schedule. Each item costs less than the $300 mentioned by another poster.
  8. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Messages: 1,912

    As a legit business this is part of it ... I too am a S-corp n my equip is part of expenses & become asset ... when I put $$ into those assets I want to list that $$ as an expense ..... so I gotta keep it up to date

    Also as well my equip is covered on my insurance & must be update & accurate if I ever need to make a clean

    Further when I sell my business ..... these "little" details provide a paper trail that a buyer can use in judging what the value is

    I too do not worry about equip under $300 of value ... I'm talking mowers n such larger purchases ....things that we depreciate thur the years ....
  9. supercuts

    supercuts LawnSite Silver Member
    Messages: 2,814

    thanks for the responces guys, funny thing is i registered the business with the town and they have never asked for any inventory or such, so now im worried one day they might knock on the door and ask for back taxes plus late fees. im playing dumb
  10. oakhill2000

    oakhill2000 LawnSite Member
    Messages: 26

    I never registered with the town but after a few years in business they automatically sent what they call a "form of List" tax report. They want to tax you on everything that you use for the business right down to the computer and desk and every ratchet and wrench in the shop. My dad has owned his own business all his life and he told me to lie and just tell them about a few things, they never check on you and if they do they have to give you notice before they come inspect. Before they come you just hide alot of the things you didn't tell them about. Tell them the rest is for personal use. They also wanted to know the purchased price of all the "taxable property" and the current value. You can "stretch the truth" on that as well. If they accuse you of lieing about the prices, tell them to buy the stuff off you, they will leave you alone after that. I hope I was some help

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