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Ann Grande, Robert DeFalco Realty, Inc.Phone: (347) 837-6989
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Tangible personal property taxes: Basic info to know

by Ann Grande 12/04/2023

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
Author

Ann Grande

Hi, I'm Ann Grande a Full Time NYS Lic Real Estate Salesperson , Top Producer for over 25 years..I would love to assist you in your search of finding a Home or Selling a Home..... 

You will benefit from having a real estate professional by your side. I would be honored to put my real estate experience to work for you....24/7 of Service Call or Text 347-837-6989 

Other Real Estate services that I handle are Buying & Selling commercial properties, Investment Properties, Land .

Areas that I Service in New York are Staten Island, Brooklyn & Manhattan