Sparky flicks wealth switch - Mary Holm
Q. Being a registered valuer, I was interested in your comments last week to a question on the depreciation of residential buildings.
Wednesday, August 10th 2005, 7:56AM
by The Landlord
I get many requests to complete "chattels" valuations that are to include items such as non-load-bearing walls, and so on, but have declined to complete the same as I have considered the practice somewhat dubious and not representing a true depreciation of the property.However, the practice is common.
One firm appears to specialise in the "chattels" valuations, promoting the same in regular articles in an investment magazine.
The impression one gains is that this firm are the experts in the subject and have gained approval from IRD for the practice.
It is the IRD's lack of response that has also given the impression all is okay.
After all, the IRD does not have to audit anyone but merely check the IR 3R Rental income form that shows the details of depreciation claimed.
Perhaps they are biding their time and plan to claw it back later?
A. It must be galling watching others profit from doing something you don't consider quite ethical. But good on you for maintaining your standards. And your clients may yet thank you.
"Inland Revenue has not approved this practice," says a spokesperson.
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