Valuing chattels
Question from Lewis updated on 8th February 2013:
I rented out my property last October after living there myself for nearly two years. I did not have the property valued when I bought it in 2009. Is it too late to get the chattels valued for depreciation calculation? Do I have to get a registered valuation?
Our expert Mark Withers responded:
If you are to split chattels from the depreciable cost base it must be done in the first return of income for the property. This would indicate you still have this opportunity. The values used need to represent the second-hand market values and should be further reduced by a deemed depreciation amount designed to recognise actual fall in value whilst being used domestically. There is no requirement for a registered valuation but IRD do expect you to retain evidence of how you have arrived at your values.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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