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CA BUSINESS PROERTY STATEMENT


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Hi dear friends here, 

Hope someone from CA can help with this.

The Business Property Statement: Should only new added assets are subjected reporting or all owned business assets are subjected to report?   Then, for subjected assets, should use FMV or its historic (original) cost?

Any advice is appreciated. :)

 

 

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4 hours ago, KATHERINE said:

Yes, sir.  The webpage was down so I didnot see your message.  Can you help me with that so I can fill it correctly, the due date is very close from now?  Thank you!  Kate

Ok....the 571L is the report from which the Business Property Tax bill is generated.   The assets of the company, less vehicles and real property (taxed under their own scheme) are listed by year at COST.   On each section of type of property (machinery, equipment, Computers, etc.) is an amount for each year's purchases of that type of property.   If you have the prior year report, it will save you a lot of headaches because the only thing you will need to do is put in the current year purchases and dispositions.    If you have to recreate from scratch, hope that your numbers match the prior years when you get done, because if the prior year amounts don't match the previous reports, and there are no dispositions on the disposition schedule to tie them out, you risk an audit.  And don't forget to put something (any amount) in for supplies.   That is easy pickings for an auditor.

As an aside, when I have gone through audits in the past on Business property, the first thing they ask for is the book and tax depreciation schedules, in detail.   Then they will ask for the detail expense GL accounts for the common places to hide assets (Misc expense, Supplies, Office equipment, small tools, materials, Janitorial, computer software, etc.)   If you get through that clean, you are home free, but if they find some ****creative**** accounting, they will continue to look.   They will also do three years at a time.   

These audits are no fun, so making sure the 571L is tied out is the first step to avoiding the audit all together.

ATX Max has the 571L.   I have not looked for all counties, but I have never had one not there when I needed it.  You are most likely going to have to do the submission online.   They should have given you a letter from the county telling you what the account number and online login are.   It is actually a pretty simple process if you have a filled out return in front of you.

Let me know if you have other questions.

Tom
Modesto, CA

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Hi Mr. Tom,

I am so grateful to receive this detailed and precise explanation.  Yes, the letter comes with some figures already filled in, so, I think the county was trying to help. :)

Yes, I saw they had a column supplies, what kind of supplies they were referring to? Are they referring to those smaller fixed assets which were write off in the same year through bonus depreciation and /or section 179?   Because the bonus / section 179 expensed them in the same year, they wont carry any book value and sometimes people take out from balance sheet, the county want to assess on them, right?

 

Thank you so much. :)

Kate

 

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