Q&A from 7/12/23 Session
Q1. I am the owner of 2 separate home-based businesses which share certain assets (i.e. the desk at which I sit). How should those shared assets be declared?
A1. If you receive 2 separate declarations from the Assessor's Office, one for each business, we would only expect the shared assets to be EITHER a. declared by ONE of the businesses OR b. split the original acquisition cost between the 2 declarations. Please note on each declaration how you have completed the forms so we understand how they should be treated.
Q2. In the course of conducting my home-based business, I only use things that were originally purchased as personal items, but are now being used in the daily course of business. How should those items be declared?
A2. The minute an item is used in the daily course of business, it becomes an asset to be declared. Use your best judgment as to the original acquisition date and cost. If you picked up a desk on the side of the road, (free), to be used in the running of your business, a nominal value must be assigned to that desk, and it should be placed in the most recent acquisition year.
Q3. The computer you use during the course of running your business has been rebuilt. How should that be declared?
A3. Rebuilding a computer is akin to purchasing a new computer. Although you would not declare the labor charge to complete the re-build, you would certainly need to declare the new parts and/or accessories.
Q4. I am the owner of a home daycare. Some of the items used during the course of any given day are items that have been provided by the parents to be used in the care of their child, such as a special bouncy seat, crib, or high chair. How should those items be declared?
A4. The declaration is only asking for assets OWNED BY THE BUSINESS. If the item is truly owned by the parents of the child in your care, you would not need to declare it. If, however, the item ends up being donated to your business once the child ages out, the business now owns the item and it should be declared going forward.