Tag: Tangible

Tangible Personal Property

What is Tangible Personal Property?

Tangible personal property is a tax term describing personal property that can be physically relocated, such as furniture and office equipment. Tangible personal property is always depreciated over either a five- or seven-year period using straight-line depreciation but is eligible for accelerated depreciation as well.

Tangible personal property is anything other than real property (land and building) that is used in the operations of a business or rental property.

Understanding Tangible Personal Property

Tangible personal property is the opposite of real property, in a sense, as real property is immovable. In comparison to intangible personal property, tangible property can be touched. Consider property such as furniture, machinery, cell phones, computers, and collectibles which can be felt compared to intangibles such as stocks, bonds, and patents that cannot be seen or touched.

Key Takeaways

  • Tangible personal property includes a wide variety of equipment, from small office
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