Chattels valuation

A chattels valuation is a professional apportionment of a property's purchase price between land, building and depreciable chattels, prepared to support depreciation claims.

Why it is worth doing

Residential buildings cannot be depreciated in New Zealand, so chattels are the only source of depreciation deductions on a rental. The size of that deduction depends entirely on how much of the purchase price is allocated to chattels and how they are categorised.

A valuation typically costs several hundred dollars and commonly identifies deductions worth several thousand dollars a year for the first years of ownership.

When to do it

At purchase. The apportionment relates to the price you paid, and reconstructing it years later is harder, less accurate and less defensible if questioned.

What it covers

Carpet, curtains and blinds, appliances, heat pumps, hot water cylinders, light fittings, blinds, and various fit-out items — each with its own IRD depreciation rate and useful life.

Common misunderstanding

You are not legally required to have one, and you can estimate chattel values yourself. But a professional valuation is more defensible, usually identifies more items, and generally categorises them more advantageously.

Depreciation recovery on sale is a real consideration. If chattels are sold for more than their depreciated value, the difference can be recovered as income. Factor that into an exit calculation.

Related terms

Last reviewed: 1 August 2026 · General information only, not tax advice.

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