For Connecticut business owners their 2013 personal property tax declaration report is due by November 1, 2013. A report must be filed in each town that the business owns personal property. Unlike real estate and vehicles, personal property is self-reported. With real estate the town will periodically do an assessment. With vehicles they have information from the Department of Motor Vehicles and will also bill for this.
Here are 4 easy steps to complete this form:
1) Get A Copy of Your Depreciation Schedule
If the business owner does not maintain this schedule, get if from your CPA. This will list all of the fixed assets owned by the business. This could include machinery, office furniture, computers, cars and other personal property. This schedule should detail the following:
* Description of the asset
* Date acquired
* Cost
* Current depreciation
* Accumulated depreciation
2) Develop a Schedule of Current Year Fixed Asset Additions
If your business has a December year end it’s likely the deprecation schedule is only updated through December. This will need to be updated to reflect any fixed assets purchased in 2013 through October 1, 2013. The depreciation schedule and the current year additions will be the information needed to complete most of the personal property tax declaration.
3) Complete the Lease Agreement Section
In addition to personal property owned, personal property leased will need to detailed. This will included the name and address of the lessee, a description and location of the property and other details regarding whether it is an operating or capital lease.
4) File the Report Timely
As was mentioned above, the 2013 personal property tax declaration is due on November 1, 2013. Failure to file on time, failure to sign the report or failure to file at all will result in 25% penalty being applied to the assessment. If you don’t expect to be able to file on time request an extension of time to file. There is no form to request an extension of time to file. Write a letter to the town Assessor requesting more time. Explaining why you are requesting additional time. More time to file may be granted if you can show good cause.
Have you filed you Connecticut Personal Property Tax Declaration Yet?
Tom Scanlon has over thirty years experience in public accounting with an extensive background in the areas of financial, tax, and estate planning. He prides himself on providing in-depth and customized solutions to privately held businesses and their owners. He is a Certified Public Accountant and Certified Financial Planner®. Tom is a frequent speaker for area organizations and has recently been quoted on CNBC, Fox 61 News and AARP's blog. Tom also has been a guest columnist for numerous publications including The Wall Street Journal, Barron's, Money Magazine, The Hartford Courant, The Hartford Business Journal, and The New Haven Register. He is a member of the American Institute of Certified Public Accountants, the Connecticut Society of Certified Public Accountants, and the Financial Planning Association. Active in the community, Tom supports a variety of not-for-profit organizations.
