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Personal use property refers to any property owned by an individual for personal use, such as computers, cars, and toys. It can be converted to business use, and its value is used for tax purposes. Some personal use property may appreciate over time, such as collectibles.
J As you seem to suggest, the term personal use property refers to any type of property owned by an individual that is strictly for personal use. The list of items that can be included as part of the property for personal use are many, since they are derived from what is personal to the owner. As such, personal use property includes personal computers, televisions, toys, cars, and any other personal items. The primary reason for categorizing property into personal use property is for tax purposes.
In some cases, items that were once listed as personal property may be converted to another use by the property owner. An example of this can be seen in the case of the personal computer that may initially be listed as personal use property, but may later be converted to business use by the owner. For example, a person may decide to open a business and use his personal computer for business purposes. Assuming the individual decides to start a translation service and the computer is designated as a business computer, the owner will need to convert the computer for business use.
In the case of the personal computer, the process to convert it from personal use to business use would include an analysis of the computer’s current market value compared to the computer’s original price. To find out the current value of the personal computer, the owner would have to do some research, including looking up the current price of this product on the Internet and other places where such information can be obtained. Once the individual has this information, he will need to subtract the current price from the original price to arrive at the fair market value of the computer. In some jurisdictions, this depreciation quality is used as a factor for dividing personal-use property into property that depreciates over time and property that appreciates over time. Examples of personal use property that may appreciate over time include collections of coins and other collectible items that generally increase in value over time, even though they are not intended for public consumption by the owner of such property.
Smart Asset.
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