Depreciation Schedule

(Jeremy Sussex) #1

Who does everyone use in Auckland to prepare a “Property Depreciation Chattels List”? Our old supplier has closed up shop.

(Marine Funfrock) #2

Hello Jeremy!

What do you mean by that? Depreciation is usually calculated by the accountant of each owner based on what’s displayed in the end of year financial statement. There’s a lot of rules to follow and it depends on each owner whether they want to depreciate or not, if they want to pool asset or not ect. That’s why we as property managers don’t go this route.

Most accountants now use Xero or MYOB and when you know what you’re doing it’s pretty straightforward to set up a fixed asset register schedule. Excel works too.

I’m a tax accountant by trade so if you need any help with this, do let me know

Merry Xmas!

(Jeremy Sussex) #3

Thanks @marine.

We have an overseas owner who has just purchased a new (not brand new) investment to add to their portfolio. Their accountant wants a “more accurate” breakdown of the chattels in the property for deprecation purposes.

In the past we have used a 3rd party to go and produce a full chattels list with values to supply the accountants as a starting point for the future deprecation. However, your awnser re: Zero could be why they are all shutting up shop.

At this stage i have told the owner that they can use the S&P as a starting point and estimate the values based on their Chattels purchase price. It is certainly not something we are wanting to take on as part of the PM Service.

Thank you for your help. It an be a minefield when your owners assume we are all things Property PA…


(Marine Funfrock) #4

Humm they would probably be able to depreciate the carpet, blinds, maybe the bed and appliances but I’m not sure I would bother for the rest. It’s time consuming and it would all go into a pool of assets that would be fully depreciated after 2.5 years anyway. You don’t need to capitalise unless what you buy is over 500$, if you pool, the depreciation would be minimum so would rather take the full deduction on all the tiny chattels when it comes up and just concentrate on depreciating what needs to be depreciated…

that’s only me though, I’d rather put my time and effort where it can bring the most tax efficiency.Chattels depreciation is also a goldmine for accountants that being said… all that time spent at 300$ per hour minimum to work out the right IRD depreciation is a waste of time and money for the owner.

Happy Christmas Jeremy!