What To Expect When Having Your Personal Property Appraised

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Personal property is considered different from real property, in that it is movable and must be treated differently for insurance appraisals. When you will be having your personal property appraised, to make sure that the process goes as smoothly as possible, it's helpful to know exactly what to expect from the process.

Determining What is Tangible Personal Property

Personal property for a business involves tangible assets. For example, a copyright is considered intangible and would not be taxed. Examples of personal property can include computer equipment, company vehicles, machinery, painting supplies, farm equipment or any other pieces of property used by your business. The value of these assets needs to be ascertained. 

Personal Property Appraisal Methods Used

All of your property needs to be appraised based on the fair market value of the product. One way to determine the value of an item is to look at the amount of income that the item is expected to produce and compare it to the expenses that the item generates. For example, a piece of machinery might produce a product sold at a certain price, but may also cost electricity and require materials to produce that product, which must be subtracted. 

Another way to appraise the value of an item is to compare the item to items used by businesses in the same item to determine how much it is worth. It might be necessary to also consider the size or location of the item in comparison with items used by other businesses.

When appraising an asset based on its cost, the process is more complicated. The methodology requires that the appraiser look at the cost and year that the asset was acquired. Then, the current age is factored in. Next, an appreciation method is used to determine the current value of the asset. This is the most common approach used, because it produces the most accurate assessment of the value of your property. 

Reporting Your Personal Property to the Assessor's Office

Appraisals produce information that must be delivered to the assessor's office from wherever the taxpayer lives. The information provided is used to determine the value of the property for tax purposes. Even if the business is closed, information about personal property related to the business needs to be reported until the property is sold or disposed of. However, having the property appraised is much faster, once you are prepared with the right information.

If you are in a position necessitating a property appraisal, contact an appraisal professional, such as those at APPRAISALS LAS VEGAS, in your area.

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20 June 2019

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