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  1. #21
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,536

    Default

    With fewer words than Ahar

    Quote Originally Posted by mattinvestor View Post
    im from Australia - now why did IRD remove buildings depreciation?
    To increase their revenue.

    Cheers
    Spaceman
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  2. #22
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    1,988

    Default

    Quote Originally Posted by gumbii View Post
    I was in this same position deciding whether or not to get a professional Chatels valuation. In the end I decided I would get one done and was so pleased that I did.

    My (conservative) estimate of chatels value was around $16k. I wasn't exactly sure what could and couldn't be included so I went on the safe side. I wrote it all up on a form my accountant gave me but then I decided I would get a valuation firm in anyway to give me more confidence in my numbers.

    The valuation came back at $49700! The valuation has paid for itself after about 2 months!
    Just remember that not everything on the chattels valuation report is necessarily claimable as a seperate chattel. Keep well away from claiming depreciation on partitions, electrical wiring, plumbing etc, as these are definitely part of the building!

    Ross
    Ross Barnett, Coombe Smith Property Accountants - Hamilton
    Are you sick of your Large Auckland Accounting firm charging too much
    for rental accounts?Click Here for better advice and fair price

  3. #23

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    I would recommend reading the IRD document IS10/01 Residential Rental PropertiesóDepreciation of Items of Depreciable Property which sets out a 3 step test for determining what is separately depreciable and gives examples. IS10/02 might also be useful -covers what is a 'building'.

  4. #24

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    Quote Originally Posted by Rosco View Post
    Just remember that not everything on the chattels valuation report is necessarily claimable as a seperate chattel. Keep well away from claiming depreciation on partitions, electrical wiring, plumbing etc, as these are definitely part of the building!

    Ross
    I was making an assumption (but we all know what they say about assumptions) that everything stated on a Chatels valuation would in fact be claimable as a Chatel. Is that not correct?

  5. #25
    Join Date
    Nov 2009
    Location
    North Shore Auckland
    Posts
    493

    Default

    Not the accountant here......but.....

    I should thnk it depends on when the chattels valuation was done...... e.g the valuation on my rentals is now "incorrect" in that a substantial proportion of "chattels" are now "building" and hence now not depreciable.....my accountant will adjust further depn claims

    I sudder to think that the valuers are incorrectly classifying such things as kitchens, bathrooms, plumbing etc.....they are all well aware of the law change.

    But be aware of buying an IP where the vendor/agent "helpfully" provides you with an outdated list of chattels or claims that the depn will be/should be such and such figure.

  6. #26
    Join Date
    Jun 2004
    Posts
    4,143

    Default

    Quote Originally Posted by Ahar View Post
    Not the accountant here......but.....

    I should thnk it depends on when the chattels valuation was done...... e.g the valuation on my rentals is now "incorrect" in that a substantial proportion of "chattels" are now "building" and hence now not depreciable.....my accountant will adjust further depn claims

    I sudder to think that the valuers are incorrectly classifying such things as kitchens, bathrooms, plumbing etc.....they are all well aware of the law change.

    But be aware of buying an IP where the vendor/agent "helpfully" provides you with an outdated list of chattels or claims that the depn will be/should be such and such figure.
    The chattels valuation will seperate all the items out - doesn't mean that they can be depreciated seperately from the building. All I do is depreciate the 'building' ons at 0% - that way if the rules change again late I still have a starting valuation.

  7. #27
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    1,988

    Default

    Quote Originally Posted by gumbii View Post
    I was making an assumption (but we all know what they say about assumptions) that everything stated on a Chatels valuation would in fact be claimable as a Chatel. Is that not correct?
    Depends on the valuation and who did it. But generally not all items claimable. Many are now building, and no depreciation.

    If you read a chattels valuation it generally recommends that you seek specialist tax or accounting advice!

    Ross
    Ross Barnett, Coombe Smith Property Accountants - Hamilton
    Are you sick of your Large Auckland Accounting firm charging too much
    for rental accounts?Click Here for better advice and fair price


 

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