Questions Legal

What is personal property of a business?

Airtract

Vanita Manohar

Professional Overthinker

Just like an individual, even businesses are known to have personal properties. However, the types of personal property owned by a business are completely different. Not just that, but even the tax-related issues involved are quite different.

By the personal property of business, we mean the type of property that can be moved and is not associated or affixed to the land. In other words, personal property includes every other thing except buildings and land, which are known as real property.

Types of personal property of a business

Personal property of a business is known to include everything that can be moved. For example, even a calculator is considered to be the personal property of a business. Big machines such as computers, manufacturing equipment, vehicles, etc., are all a part of personal property. All these things can be moved from its place, and thus, they are counted as personal property.

Personal property can be of different types. It includes:

  1. Tangible property
    Tangible property is the type of property that can be touched. For example, machines, equipment vehicles, etc., are all considered to be tangible personal property.

  2. Intangible property
    Just opposite of tangible property, this type of property cannot be touched. This includes bonds, securities, mutual funds, and other intangible assets. Even intellectual property, including copyrights and patents, come under intangible personal property. These are considered to be properties as they can be both sold or bought.

  3. Listed property
    This is a particular type of personal property that can be utilized for both personal and business reasons. Every business has its personal property. This includes everything other than the things that can’t be moved to such buildings and land. Personal property of a business is what helps a business to run properly.

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