Alajane Posted May 3, 2016 Share Posted May 3, 2016 I received a packet of forms ("Business Personal Property Return" stating that "while performing an audit of the business licenses purchased in ...., it was discovered that your business has purchased a business license, but has not filed a business personal property rendition." The forms have to be turned in by this Friday with an itemized listing of all personal property owned by the business. I've had a business license and been paying sales tax and reporting income tax since 2003, but have never seen these forms. When I went through my records, all the "business personal property" I could identify was the following: Folding Tables (4) (2 used as pouring stations and 2 for shows) Folding Chairs (2) (for shows) Presto Kitchen Kettle Pouring Pots (4) Single Burner Hot Plate Infrared Thermometer Heat Gun Glue Pot Shelving Units (4) 3-drawer storage cart Wooden Display Cases (3) (for shows) EZ-Up Tent (for shows) I also have a microwave I use to melt the small amount of soy wax I use but don't know whether it should be listed since it was a hand-me-down from my daughter and not purchased by the business. Have any of you filled out these types of forms? What really bothered me was the last statement, that the business could and probably would be audited. My business is conducted from a bedroom in my home where I have set up my pouring station and another bedroom with shelves of candles and melts. I have in the past done quite a few shows but have pretty much quit doing those; I have a few regular customers and do a few fundraisers each year. I don't know whether I want to just close my business rather than have to deal with this since I'm not making much lately anyway. As you can tell, this is really freaking me out and I don't know why! If there are any responses to this, don't think I'm not interested since I can't get back until lunchtime tomorrow since I no longer have internet access at home. I do my internet-ing during lunch at work. Thanks for any thoughts or comments, Jane 1 Quote Link to comment Share on other sites More sharing options...
kandlekrazy Posted May 3, 2016 Share Posted May 3, 2016 I never had to do it for my candle business but I do one every year for our antique stores. We don't claim what was given to us, just what was included when we purchased business and what we added in equipment & furniture and we list value at what we could sell it for today. I'm not sure if your county would be the same. They are most likely going to charge you a tax based upon what you report. 1 Quote Link to comment Share on other sites More sharing options...
Moonstar Posted May 3, 2016 Share Posted May 3, 2016 Jane I could totally understand why your freaking out you mention that you utilize a bedroom in your house, talk to your CPA, I know your able to use a portion of your rent/mortgage, which ever applies to you as a write off since it's used as a business work space. Same goes for a portion of your utilities - business internet gas or mileage - again however you have it set up - for to - from shows - traveling for purchases etc - copy paper - ink etc for computer - labels , you get the gist but it can be nerve wrecking Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 4, 2016 Share Posted May 4, 2016 I went through something similar as I got one of those forms for the first time this year too. So I called the tax office and they helped guide me through the listing process. Turns out the items like my old computer, desk, printer, etc are so old I wasn't required to pay anything on them. But I still have to list them each year. So the year you purchased your furniture/equipment can make a big difference in how much you pay. 1 Quote Link to comment Share on other sites More sharing options...
Alajane Posted May 4, 2016 Author Share Posted May 4, 2016 Thanks, guys, for your responses. I do use mileage for shows and other business travel, but don't deduct a portion of my home expenses because my CPA said I could only do that if that's the only thing those rooms are used for--and all my house is double-duty! The only non-business items in one of the rooms are Christmas decorations in a closet, but the CPA said to be safe, it would be best not to claim it. Candybee, your response about the age of the equipment makes sense to me, and most of my items were purchased at least 10 years ago. It's my understanding that this does not include supplies such as wax, fragrance, jars, etc., right? Just the equipment used to manufacture? Thanks again, Jane 1 Quote Link to comment Share on other sites More sharing options...
pcbrook Posted May 4, 2016 Share Posted May 4, 2016 If every state is the same then yes, it is just for equipment. I just included what I depreciate on my federal taxes. 1 Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 4, 2016 Share Posted May 4, 2016 (edited) 1 hour ago, Alajane said: Thanks, guys, for your responses. I do use mileage for shows and other business travel, but don't deduct a portion of my home expenses because my CPA said I could only do that if that's the only thing those rooms are used for--and all my house is double-duty! The only non-business items in one of the rooms are Christmas decorations in a closet, but the CPA said to be safe, it would be best not to claim it. Candybee, your response about the age of the equipment makes sense to me, and most of my items were purchased at least 10 years ago. It's my understanding that this does not include supplies such as wax, fragrance, jars, etc., right? Just the equipment used to manufacture? Thanks again, Jane Right. You don't list wax, Fo, jars, dyes, additives, and various supplies, etc. But if you purchased shelves to put your supplies on those are considered taxable. If you are using old shelving in your home you purchased years ago you may not have to pay tax if it is older than the cutoff taxable date. In Virginia for example the cutoff date is 7 yrs. They charge 10% tax on the purchase amount of equipment & furniture. But if the amount is less than $135 than it is exempt also. Also, if its over 7 yrs old its exempt. So if I use shelving, computer, printer, desk, and the total amount comes to $1200 total the tax amount is 0. 10% would have been $120 but since its under $135 I pay nothing. All of this is for Virginia so not sure what your state regs are. It should say on the form or call the number on the form to have anything clarified you don't understand. Hope that helps. Edited May 4, 2016 by Candybee 1 Quote Link to comment Share on other sites More sharing options...
Moonstar Posted May 4, 2016 Share Posted May 4, 2016 great information guys ! I picked up a few pointers I didn't know about - thanks for sharing ! Quote Link to comment Share on other sites More sharing options...
puma52 Posted May 6, 2016 Share Posted May 6, 2016 (edited) Ok AlaJane....I got a call from MY County Tax Assessor's office yesterday and they left a message on my phone to call them....this thread was the FIRST thing I thought of ....well first thing this am I called them and they just had a simple question...big sigh and all is good! This is the first time they have ever called me. Seriously don't let this run you out of business. They are there to help you. The audit part is probably that they have just noticed that they need to get these forms from you. Call them or go in tomorrow when you hand in your info...they are great folks..they will help you understand and walk you through this. Gracious....the Assessors sure are busy little bees with us this year! Edited May 6, 2016 by puma52 1 Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 9, 2016 Share Posted May 9, 2016 Puma you crack me up! I agree, they are busy bees this year. They must have all got the same memo. LOL 1 Quote Link to comment Share on other sites More sharing options...
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