Texas BPP Taxation 2017 - http://www.poconnor.com

1. April 13, 2017

2.  What is taxable?
 How is it valued?
 How should it be valued?
 Rendition options
 Valuation options
 Appeals / getting results

3.  Real estate
 Tangible business personal
property
 Mineral interests

4.  Intangible personal property
 Contracts
 Leasehold improvements
 Data
 Computer programs
 Business enterprise value

5.  Goodwill
 Accounts receivable
 Cash
 Bonds
 Stocks
 Trademarks

6.  Market value on January 1
 Typical willing buyer and
willing seller, neither under
duress, and both well informed
 Sales of the items as a group

7.  Based on depreciation schedule
if you render with cost and year
of acquisition.

8.  If your business has 50
employees or less, subsection
22.07(c) allows you to base your
good faith estimate of market
value on depreciation schedules
used for federal income tax
purposes.

14.  Regulatory compliance by
providing cost new and year
purchased (including furniture
purchased prior to 2002).
 Tax reduction approach by only
providing the opinion of value,
which also provides regulatory
compliance.

15. Render?
10%penalty if do not render.
Class A misdemeanor violation of
penal code to file false rendition.
50% penalty for bad faith, false
rendition.
Only 10% penalty if do not render.

16.  Based on market value, and not
on IRS depreciation schedules.

17.  Market value of an airplane
without the maintenance log?
 The maintenance log is
essentially data that could be
kept in hard copy or electronic
copy.
 50% discount?

18.  Cost new in 2014 - $800 million
 Market value January 1, 2017?

19.  Assume an office set up in 2016
and the equipment, phone
system and furniture cost $3
million.
 Market value on January 1, 2017?
 How much would someone pay
for 6 month old FFE?

20.  $40,000 car came with software.
Software is not taxable. Value
without software?

21.  Companies are leaving behind
furniture, equipment, phone
systems and computers in the
Energy Corridor.

22.  90%
 50%
 35%
 15%
 1%

23.  In-house
 Independent fee appraiser

24.  Value of FFE as % of cost new?
Low
 Cost of more valuable
equipment – visit with industry
experts
 Your estimate will be more
reasonable than the appraisal
district depreciation schedule.

25.  Goal is to resolve value through
the rendition; that typically
works.
 If not, need support for value.

26.  Worst case scenario is to obtain a
third-party appraisal and pursue
a judical appeal. Provided the
value is reasonable, the appraisal
district will settle.

27.  Patrick O’Connor – 713 822 8613
 John Fisher – 713 375 4297
 Doug Ford – 713 375 4233
 Frank Ledesma – 713 375 4250
 www.poconnor.com
 www.cutmytaxes.com