If you own a business, one of the responsibilities you need to take seriously is filing commercial property taxes when they are due. However, this can be a very tiresome and intimidating process, especially if you do not know what to do. Overlooking any aspect of the tax process can lead to serious legal consequences.
If you are filing your commercial property taxes, it helps to know and avoid mistakes that can hurt your business down the road. Here are common mistakes you need to steer clear of while preparing your commercial property taxes:
Missing deadlines
Every state has specific deadlines for filing all taxes, including commercial property taxes. In Minnesota, May 15th and October 15th are crucial dates for filing commercial property taxes. If you miss these dates, you could be in trouble. Penalties for late filing of your commercial property taxes can include fines and late penalty fees.
Misreporting personal and commercial properties
It is not uncommon for a business to misreport personal property that is housed within the commercial property holding while filing the taxes. This is especially true if a sole proprietorship. If this happens, you might end up paying more taxes than you should. Fortunately, you can avoid this problem by engaging a tax expert who specializes in commercial properties.
Taking a reactive approach
Most commercial property owners handle their tax obligations reactively rather than proactively. If you do not have a tax management strategy in place, you could soon be dealing with the consequences of tax mistakes. To adopt a proactive approach to commercial property tax management, you need to start by assessing your property on an annual basis. This will give you control over how to prepare your taxes when they are due and avoid costly mistakes.
Commercial property tax mistakes can be very detrimental. If you’ve already made mistakes, you may need legal guidance to appeal any negative tax consequences.