When awarding carpet damage for carpet needing to be replaced - depreciation, according to the age of the carpet is taken into account.
First & foremost though any depreciation should be relative to the condition of the carpet stated in the tenants incoming inspection report .
This is just a scenario: Lets suppose a carpet is 10 years old - Its condition still excellent as stated and signed in the incoming property inspection report.
Tenants have been in the property 2 years but stained the carpet beyond repair.
Only option is replacement with new carpet.
Would an adjudicator award $0 due to the age of the carpet - 10 years of depreciation at current IRD rates would leave it a nil value asset ?
The IRD schedule for carpet depreciation is around 20% per annum - in theory no residual value for tax purposes is left after 5 years.
Are there any guidelines given to TT that when adjusting claims for depreciation any offset should first be relative to the actual condition at the start of a tenancy?
This should also apply to other chattels like curtains etc
First & foremost though any depreciation should be relative to the condition of the carpet stated in the tenants incoming inspection report .
This is just a scenario: Lets suppose a carpet is 10 years old - Its condition still excellent as stated and signed in the incoming property inspection report.
Tenants have been in the property 2 years but stained the carpet beyond repair.
Only option is replacement with new carpet.
Would an adjudicator award $0 due to the age of the carpet - 10 years of depreciation at current IRD rates would leave it a nil value asset ?
The IRD schedule for carpet depreciation is around 20% per annum - in theory no residual value for tax purposes is left after 5 years.
Are there any guidelines given to TT that when adjusting claims for depreciation any offset should first be relative to the actual condition at the start of a tenancy?
This should also apply to other chattels like curtains etc
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