Tom, great post! My responses inline below with your replies truncated for the clarity of this thread.
On Wed, Nov 11, 2009 at 1:52 PM, Tom DeReggi <wirelessn...@rapiddsl.net>wrote: > You only owe property tax on property that YOU own, until the time it is > depreciated, and its paid the the State/County that the property is located > in. > So if you lease equipment or property, you are not obligated by law (Tax > code) to pay property tax on the leased equipment. However, if you agreed > under contract to pay your leassor's > property tax, then that obligates you to pay the Leasor. (Note difference > between Fair Market Value Lease and Lease to Own Lease which may have > differences in law on whether the leased property is owned by the leasor or > leasee for Property Tax purposes. That question I'll leave to your > Accountant) > Correct. I currently have a Fair Market Value lease and it requires me to pay the property taxes. There are Expenses, Cost of Goods, and then there are Assets. You as the > business owner claim what purchases are COGS, expenses and assets, in line > with Generally Accepted Accounting Practices. So, in your books, are you > recording a Nut/bolt as an asset, expense, or COGS?... + > So to answer your question..... Do you pay tax on every screw and Bolt? > Again, the reason for this post is to explore options if any. In business, it seems taxes control much of what we do. Therefore, I wonder if it makes sense to "expense" the radio like a screw & bolt, if possible? Alternatively, maybe its better if you sell it to the customer or even give it away. > it can be hard to track what is owed in Property Tax in accounting systems, > because tracking for Income and financial statements might be different > than > needs of Property Tax, so I track my property for Property tax seperately > in > a spreadsheet. I wonder how larger companies deal with this, but I assume > as companies grow larger, they probably have to work with a set of > assumption to better automate their tracking. > > Tom DeReggi > RapidDSL & Wireless, Inc > IntAirNet- Fixed Wireless Broadband > Another great question. Maybe that's why the satellite television companies give the equipment away? Thanks! -RickG -------------------------------------------------------------------------------- WISPA Wants You! Join today! http://signup.wispa.org/ -------------------------------------------------------------------------------- WISPA Wireless List: wireless@wispa.org Subscribe/Unsubscribe: http://lists.wispa.org/mailman/listinfo/wireless Archives: http://lists.wispa.org/pipermail/wireless/
