How to Assess the Value of Personal Business Inventory Property in California
Whether or not your personal business owns a lot of inventory, it is difficult to keep track of the value of all that inventory. The different between the purchase price of the inventory and its current price fluctuates greatly depending on the type of inventory you own, its shelf life and the IRS-approved depreciation schedule for that year.
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Instructions
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Check with the California Secretary of State to obtain a list of all businesses registered in California in which you are a personal owner or a part-owner. The California Secretary of State maintains a list of all registered businesses, as well as a list of whether those businesses are sole proprietorships (meaning it has only one owner) or partnerships (multiple owners).
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Look at your California state and U.S. federal business tax filings. These tax filings will have a depreciation schedule attached. This schedule lists all the business's property and the current value of that property. The IRS rules, which change every year, dictate how much the property can be devalued against its previous year value. The value of inventory listed on your tax forms is the official assessed value of your business property.
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Hire a professional assessor to assess the value of your inventory if you disagree with the value that is written on your tax returns. The bank will recommend an assessor.
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Review the receipts for all inventory purchases if this is the first year of your business and you have not yet filed a tax return. If you have not yet filed taxes, your inventory has not depreciated in value from the purchase price yet, in the eyes of the IRS.
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