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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.
Real property includes: all lots and land; buildings, improvements, and fixtures (except trade fixtures); and mobile homes that are used for residential, office, commercial, or agricultural purposes. See Neb. Rev. Stat.
Personal property is all property other than real property and franchises. Recovery Period. The recovery period is the federal Modified Accelerated Cost Recovery System (MACRS) recovery period over which the Nebraska adjusted basis of property will be depreciated for property tax purposes.
The Personal Property Tax Relief Act allows for an exemption of the first $10,000 of value of taxable tangible personal property in each tax district in which a Personal Property Return is filed.
The term tangible personal property also includes trade fixtures, which means machinery and equipment, regardless of the degree of attachment to real property, used directly in commercial, manufacturing, or processing activities conducted on real property, regardless of whether the real property is owned or leased, and ...
It is the Nebraska adjusted basis of the tangible personal property multiplied by the appropriate depreciation factor for the recovery period and year. The property tax is imposed on the net book value of tangible personal property.