In Revenue Ruling 95-05, the Tennessee Department of Revenue emphasized that Tennessee uses the destination test to determine where sales of tangible personal property
should be sourced for corporate franchise and excise tax purposes.
Similarly, Massachusetts recently passed legislation requiring all transfers of standardized computerized software to be treated as tangible personal property
for sales tax purposes; see Laws 2005, HB 4169, Section 34, amending Mass.
48) Retailers claiming the exemption in timely filed returns, however, will not be required to furnish the SBE with copies of the exemption certificates for sales or leases of tangible personal property
to a single qualified purchaser that do not exceed an aggregate total of $25,000 during a single calendar quarter.
16) In an administrative release, Washington explains that for business and occupation (B&O) tax and for sales tax purposes, tax applies to tangible personal property
, digital products, or services provided in exchange for virtual currency in the same manner as it would in exchange for consideration.
Editor's Note: Your editor shares the concurring judge's deep seated concern that under Texas Law the use of tangible personal property
is determinative of whether a hospital or individual is or is not immune from liability for his or her negligence in causing a patient's injury or death, The legislature should address this as soon as possible.
As you can see in the example below, the first year depreciation deduction is approximately $79,000 for a $3 million commercial building using a 39 year life, versus a much larger approximately $346,000 in depreciation by merely segregating out $300,000 of the building's components into five year tangible personal property
Tangible personal property
can suffer economic-related external obsolescence when a company is shackled with decreased demand and prices for its products or increased costs and competition.
Distinguishing between tangible personal property
and a building made up of its structural components is an area of great controversy.
The exception lies for "Machinery, or equipment for use or consumption directly and predominantly in the production of tangible personal property
Pure Cycle Corporation entered into an Asset Purchase Agreement with High Plains A&M on the last day of its fiscal year, August 31, 2006, whereby we acquired (i) approximately 60,000 acre-feet of water rights in the Arkansas River and its tributaries, (ii) approximately 17,500 acres of real property, and (iii) certain contract rights, tangible personal property
, mineral rights, and other water interests associated with the real property.
The average value of the taxpayer's real and tangible personal property
owned or rented and used in the state during the tax period exceeds the lesser of $50,000 or 25% of the average value of all the taxpayer's total real and tangible personal property
States generally tax the sale of tangible personal property
and enumerated services.
25135: Adopts the "Finnigan" rule in assigning sales from tangible personal property
As under the current regulations, costs incurred to acquire or produce real or tangible personal property
having a useful life substantially beyond the end of the taxable year must be capitalized.
Generally, deferred rent agreements are tangible personal property
agreements involving more than $250,000 in rent payments under which either of the following applies: