The process of closing business property transactions involves many duties on the part of the seller. It is not simply a matter of taking possession of the property and selling it. It is an opportunity for you to become informed about what is owed to you by other parties involved in the transaction. In most cases there are liens and judgments registered against the property.
Summary Judgments & Liens- How to Obtain Them Relief. Completing The Business Property Statement. Requesting additional forms and Copies from the other parties involved. You are not Out Of Business or Don’t own a business. If the transaction includes a lien, your state may allow for an exemption from registration.
Business Asset Protection. Filing a Business Asset Protection Request. If your state has enacted a protection of business property act, there are specific rules and procedures that must be followed in completing the asset protection filing. Your state Attorney General will be able to advise you as to the filing requirements. This type of filing can affect your state tax liabilities.
Assessment of the Assessments. Assessments are a complicated matter and it is generally best not to try to deal with them on your own. Your accountant would be the best person to make these assessments as they relate to your business property. Most states have different types of assessments that apply to different types of assets and liabilities. If you attempt to deal with the assessment yourself, you could end up making errors that negatively impact your tax returns.
Determine the Capital Gains Rate. Many states have special rules about the taxation of capital gains. Different counties and municipalities have their own assessed value system, and business owners need to be familiar with this across the state. The most common reason for a change in the capital gain tax rate is, if an individual receives compensation from the sale or transfer of a depreciated asset. This can occur if the compensation increases with the asset’s appreciated value, for example, if the property taxes are lowered.
Submit Property Value Estimates. One very important part of preparing your financial documents for your business involves submitting your assets and liabilities appraisals and estimates. It is a good idea to actually visit the assessment area in your county or city in order to properly estimate the fair market value of your assets. This is especially true of business assets, since these types of assets tend to appreciate more quickly than other types of assets do. Your assessor will be able to help you with estimating the value of your property, but it is critical that you submit your estimates in the prescribed manner, so that your property taxes can be calculated appropriately.