From New Zealand Property Investor:
“The carpet in your rental property probably can’t fly, but it can still work some magic – putting as much as a third of its cost back into your pocket.
“Yet according to property accountant Tony Thorne, too many investors are missing out on this IRD windfall – and not just from their carpet – because they are neglecting to carry out a chattels valuation.
“Widely publicized changes stopping depreciation claims for buildings came into force on April 1, 2011. However, an updated list from the IRD detailing items which they consider property chattels – which can still be depreciated – was released last November with little fanfare.”
…
“Thorne says items the IRD deem to be chattels include heat pumps, carpet, water heaters and waste disposal units.
“Thorne uses carpet, valued at $5000, as an example of how much money could be claimed back.
“If an investor holds the property for five or six years and depreciates the whole lot, the savings – based on a 33% tax rate – is $1,650.
“If you don’t get a chattels valuation, you get zero dollars back,” says Thorpe.”
