Filing your Maryland Personal Property Return (PPR) is a key part of maintaining compliance if you own or operate a business in the state. Many business owners wonder whether supporting documentation is required when submitting their return. The short answer is: it depends on your business's specific circumstances.
The Maryland Department of Assessments and Taxation (SDAT) uses the Personal Property Return to determine the value of tangible personal property owned by businesses. This includes items like furniture, machinery, tools, equipment, and inventory. While the standard form may seem straightforward, there are cases where supporting documentation is either required or highly recommended.
If your business is reporting depreciable assets, especially if you are using your own depreciation schedule rather than the default one provided by SDAT, you must include a detailed depreciation schedule or fixed asset list. This documentation should show the date of acquisition, cost, and depreciation method used for each asset. It helps SDAT verify your reported figures and ensures an accurate assessment.
Also, if you are requesting an exemption—for example, as a home-based business or nonprofit—you must include proof that your business qualifies. This could include IRS tax-exempt determination letters, lease agreements, or signed affidavits, depending on the exemption type.
Even when it’s not mandatory, including supporting documentation can help prevent issues later. For instance, if you’ve disposed of or sold a significant portion of your property, a list of disposed assets with dates and sales information can support your adjusted figures. It also protects you in the event of an audit or assessment review.
Whether you file electronically through Maryland’s Business Express portal or by mail, you have the option to upload or attach documentation. For electronic filers, the portal offers fields to include supporting files. For paper filers, make sure all attachments are clearly labeled and securely fastened to your return.
While not every business must submit documentation with their Personal Property Return, providing accurate and thorough information, especially for deductions or exemptions, can help avoid delays, penalties, or audits. When in doubt, consult the SDAT instructions or a qualified tax professional to ensure you’re meeting all requirements. Supporting documentation isn’t always required—but it’s often a smart move.
Make sure that your Maryland return is fully compliant — contact Watter CPA today for expert guidance on submitting documents and preventing extra last minute costs!
