depreciation of chattels

[tisme]

hi
can anyone explain in simple terms about the benefit of paying someone to do a depreciation of chattel rather than the accountant using whatever formula they use?

cheers

Phyllis

[Kiwi_Investor]

First of all you need a Valuer to do a schedule of all the items you can depreciate. This costs around $300 or so, I got QV Valuations to do mine.
They value all the items and add the percentage for each item as per the IRD tables (this is on the IRD website), using either straight line or the other method that escapes me. Ths IRD have good info on the IRD site.
I would then give the schedule to my accountant to work out the deduction for your return. The actual building structure can also be depreciated, I think the rate is 2.5%, but don't quote me, again the IRD has info on this to.

Hope this helps

KI

[SEIBU]

In simple terms:

The accountant will still use the same depreciation rates (formulae) to calculate depreciation.

The difference is that a chattels valuation will value them HIGHER than your standard registered valuation. This means that you can claim back more in depreciation each year. Which means, depending on your structure, more money back from the IRD each year.

I used Valuit (they have an ad here somewhere - Warren Tucker is the manager), and at $365 GST inclusive, it's very cheap when you consider the benefits.

[Warren]

Tisme

Feel free to visit our website which explains the advantages of having a chattel valuation completed

Regards

[Julian]

Or read through some of Warren's past postings that will also explain this in full detail.
Julian