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Eliminating Ghost Assets

Fixed Asset List Maintenance

Fixed asset lists are conceptually all tangible personal property with value. Ghost assets (that no longer exist), obsolete property and intangible personal property should be excluded from fixed asset lists prior to rendering. Ghost assets exist on the books but are no longer the property of the company. They were soldlostdamaged or stolen or are just obsolete. Appraisal district valuation tables typically have a residual life of ten to thirty percent. Hence, a fifty-year-old drill-press would be valued at ten to thirty percent of cost. Removing any additional cost basis from the depreciation schedule is a direct and acceptable means to increase depreciation. It will also reduce personal property taxes.

Fixed asset management systems seek to track fixed assets for the purpose of financial accountingrisk management, and accountability. Management systems also help ensure the existence and proper replacement of property, removing “ghost” assets from the books. Studies show that, for large organizations, as much as 20 percent of their assets are no longer in service, have been disposed of without record, or have been lost. Depending on the value of those assets, correcting asset and insurance records can cause a significant reduction in insurance costs.

Ghost assets can occur from many causes including omission of updating the fixed asset listing, mergers where information was not complete, and other causes.

A practice tip to reducing ghost assets is to have an annual “asset-clean-up” day similar to the process some people use to purge paper files. If the process has not been done in years, the potential savings from property taxes and income taxes (due to additional depreciation) is even larger in the first year.

ENROLL TODAY In the Property Tax Protection Program™

Your property taxes will be aggressively protested every year by the #1 property tax firm in the country. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced! Many FREE benefits come with enrollment.

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When you submit your enrollment, you understand this is a risk free offer to you. If your taxes are not reduced you PAY NOTHING, and a portion of the tax savings is the only fee you pay when your taxes are reduced.

Property Tax Protection Program™ Benefits

  • No flat fees or upfront costs.  No cost ever unless your property taxes are reduced.
  • All practical efforts are made every year to reduce your property taxes.
  • Never miss another appeal deadline.
  • Property taxes protested for you annually.
  • You do not have to accept the appraisal district’s initial guesstimate of value.
  • We coordinate with you regarding building size / condition to avoid excess taxes.
  • Free support regarding homestead exemptions.
  • Some years are good – typically 6 to 7 out of 10 will result in tax reduction for you.
  • The other 3 to 4 years out of 10 we strike out. Most often due to people issues in the hearing process. Some years we get an easy appraiser at the informal; some years someone who is impossible to settle with.