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This topic comprises 2 pages: 1 2
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Topic: Valuing Equipment for the county assessor
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Dustin Mitchell
Phenomenal Film Handler
Posts: 1865
From: Mondovi, WI, USA
Registered: Mar 2000
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posted 06-28-2010 04:33 AM
Since I can't sleep and I'm bored:
http://www.dat.state.md.us/sdatweb/ppbooklet_2010.pdf
There's the booklet that deals with your question. Never mind that the first part of the title says 'Personal Property Return', if you read on its all about business assets and property.
Page 4 states the following:
quote:
Furniture, fixtures, tools, machinery and equipment not used for manufacturing or research and development. State the original cost of the property by year of acquisition and category of property as described in the Depreciation Rate Chart on page 4. Include all fully depreciated property and property expensed under IRS rules.
That's referring to the year YOU acquired it, not the original owner. However, I don't know if you can say the property started with a value of $0-that would be a nifty way for you to get out of taxes-would work for the person giving it to you too since they could maybe claim the difference in the book value of the asset at the time of donation and $0 as a capital loss.
On page 6 (referred to as page 4 in the document) are the depreciation tables. At a guess I'd say your assets fall into Category A and/or the 'Long Lived Assets' category. In the first case depreciation is 10% per year with a minimum assessment of 25% of the original cost. In the later apparently the State determines the rate on a case by case basis:
quote:
Property determined by the Department to have an expected life in excess of 10 years at the time of acquisition shall be depreciated at an annual rate as determined by the Department.
At any rate, as said before, talk to an accountant, they'll be familiar with the rules and procedures.
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Mike Frese
Master Film Handler
Posts: 465
From: Holts Summit, MO
Registered: Jun 2007
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posted 06-28-2010 08:38 AM
Dustin,
Sorry you could not sleep. I am in Missouri, not Maryland.
Again this is what the assessor told me: personel porperty used in a business will never be depreciated to zero and have a $0.00 assessed value. Assets (at least in my case he said) will maintain a assessed valuation of 10% for as long as it is used in business. This, of course, is a significant difference to how assets are handled for financial and managerial accounting.
Since, I paid no consideration for the equipment, the valuation rests on what the equipment would have cost in 1979. He said that he would accept any reasonable estimate of value. For example, he said he would be skeptical if I said $1,000.
Again, no accountant needed here unless the accountant knows the value of theater equipment in 1979.
I do have it in writing that the property manager considers the equipment mine.
Thanks for everyone's help. I am doing what the assessor wishes for me to do. Which is - assign a value to this equipment when it was put in place in 1979.
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This topic comprises 2 pages: 1 2
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