Tax & Accounting Blog

Connecticut – Fixed Assets and the Personal Property Declaration

Blog, Fixed Assets, ONESOURCE, ONESOURCE Property Tax October 10, 2016

How do you know when an asset should be included on the reconciliation of fixed assets section of a declaration? A fixed asset, by definition, is any asset or property that cannot easily be converted to cash and is typically referred to as a tangible asset.  Furthermore, a fixed asset is any type of asset whose “future economic benefit is probable to flow into the entity, whose cost can be measured reliably”. (International Accounting Standard 16). But what does that really mean? For personal property, this would apply to any tangible asset that receives depreciation over the life of the asset, like furniture, fixtures, machinery, equipment, computers etc.  In other words, if your asset is not consumed, expended or disposed of by the business within the year, then what you have is a Fixed Asset.