Valuation of Chattels: why is it necessary? Why should you spend good money ($400 + GST) on getting your chattels valued by a commercial valuation company?
There are a number of good reasons why. Eight, in fact. Here they are:
1. MAXIMISE YOUR DEPRECIATION
By getting a specialist valuation company to do your valuation, you will be able to claim everything that the Law allows. Do it yourself, and you’ll miss something, and, as a result, claim less and pay more tax.
2. MINIMISE RECOVERY OF DEPRECIATION
How so? Arguably, many of the chattels do not increase in monetary value of the term of ownership, therefore, depreciation of such assets is allowable.
3. REDUCE THE RISK OF PENALTIES
Inland Revenue do audit apportionments. It is in the best interests of a commercial valuation company to use calculation methodologies in harmony with established tax law – their reputation depends on it. Therefore, you minimise the likelihood of ending up with questionable deductions and related penalties in the event of an IRD audit.
4. CONSISTENT REPORTING METHODS
Self-explanatory really. A commercial valuation company will give you the same results, every time.
5. MEETING THE REQUIREMENTS OF IRD
As per point three, commercial valuation companies tend to continually research to ensure that their reporting methods are in accordance with IRD requirements and rulings, meaning peace of mind for you.
6. INCREASED CASH-FLOW
Logically, the more you can claim and depreciate, the more money you have. In other words, increased cash-flow.
7. EASY DISPOSAL OF YOUR ASSETS
Any decent commercial-grade valuation system should be detailed enough that if any asset within the property is disposed of they can provide a value for the specific item.
8. A ONE OFF COST
A commercial valuation company report on your chattels forms the basis of the depreciation schedule for the property, which is used throughout the years of ownership. No other yearly reports or cost are necessary.
So, who to choose? EpsomTax.com recommends the services of Valu-it.
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