Indiana Business Tangible Personal Property Return

Business Personal Property taxes (PPT) have the worst name of any type of tax in the history of taxes. Personal property taxes have nothing to do with your personal life. Well then, what is business personal property? The straight up accounting definition of business personal property is anything which is not real property. Makes a lot of sense right? Real property includes things like land and buildings; businesses pay real estate taxes on land and buildings. So, business personal property is the remaining depreciable property of the business (office furniture, computers, and equipment). Vehicles are not included as they pay the tax with their license plates.

Businesses are required to file a PPT return by the 15th of May (the Indiana Allen county assessor does not allow extensions).  The forms which most small businesses are supposed to file are Form 103 and Form 104.  There are 2 Form 103′s: a short form and a long form. In some cases, filing one form over the other will result in a lower assessed value which will result in a lower tax bill.

Unlike in the past, the assessor’s office is not mailing out forms this year.  Instead, they have mailed a brown postcard reminding businesses that the forms need to be filed.  The post card has a link (www.allencounty.us/personal-property) in which you can follow to retrieve the forms needed).

It is important to remember that Indiana businesses pay the PPT in arrears. Thus, you will receive a tax bill for the PPT form you filed on May 15, 2012 in the early spring of 2013.

You can amend a timely filed PPT form up to 6 months after the due date.

Also, something that I find very amusing: there is no common sense or practical instructions (besides the Indiana tax code written in legal speak) on how to file the forms. Every year, our firm has discussions with the Allen County Assessor’s office
regarding this and to understand the form because of the lack of formal guidance.

Additionally, the Allen county government has hired an NC audit firm to conduct audits of personal property assessments.

Are you in compliance with these filings?  Do you have questions or need help preparing these returns?  Our firm prepares over 150 of these tax returns every year for our clients.  It is our job to file these returns appropriately.

Please call Brent today at 260-407-5000 to discuss your tangible business personal property taxes!

Brent Bracht

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