Chattel With Us.

FAQ (Frequently Asked Questions)

1. What is Chattel?

2. Why get a Chattel Appraisal?

3. What properties qualify for a Chattel Appraisal?

4. How long is the accelerated depreciation period?

5. Can't I just use retail values for my personal property and divide it by 5 years?

6. Could I just expense personal property I place into the rental rather than depreciate it?

7. Can I depreciate the Chattel myself?

8. How will a Chattel Appraisal affect me when I sell the property?

9. What is the Time Value of Money?

10. Do you offer a referral program?

1. What is Chattel? ^
Chattel is the personal property found within every residential rental property i.e. flooring, cabinets, counter tops, appliances, light fixtures, fencing, landscaping etc. Over 65 items have been identified by the IRS as Chattel.

2. Why get a Chattel Appraisal? ^
Utilizing the accelerated depreciation allowed by the IRS can turn a negative cash flow property into a positive cash flow property, or improve the cash flow in one that is already cash flowing. In addition, a Chattel Appraisal can significantly reduce your taxable income now, allowing you to use the Time Value of Money to your advantage.

3. What properties qualify for a Chattel Appraisal? ^
A Chattel Appraisal can be performed on any sized residential rental property. The IRS also has requirements stating you must be the owner of the property and the property must be used for business or an income producing activity.

4. How long is the accelerated depreciation period? ^
The IRS typically assumes a five year life span for most personal property, although some personal property has a life of over five years.

5. Can't I just use retail values for my personal property and divide it by 5 years? ^
Unfortunately, it is not that easy. The IRS specifies different percentages allowed to be depreciated each year. Your accountant will know how to depreciate based on the info in our Cost Segregation Study.

6. Could I just expense personal property I place into the rental rather than depreciate it? ^
Depreciating the personal property allows you to lower your taxes over 5 years. Expensing these items allows you to write off or lower your taxes only the year it was installed. You will want to discuss this with your accountant.

7. Can I depreciate the Chattel myself? ^
You can if you understand the IRS rules. It is always better to have 3rd party independent verification. Click here to see an actual property done by the owner, and then done by Chattel With Us.

8. How will a Chattel Appraisal affect me when I sell the property? ^
If you plan to sell the property within the next 12 months, a Chattel Appraisal does not make sense due to recapture. A property held for more than a year will benefit from depreciating Chattel based on the concept of Time Value of Money.

9. What is the Time Value of Money? ^
It boils down to this question: Would you rather have your money today, or at some time in the future? If you are like us, you would rather have your money today instead of waiting until some time later. Operating under this premise, you can better invest your tax savings using accelerated depreciation to create a bigger return, than to not accelerate and let the IRS hold onto it without earning a return.

10. Do you offer a referral program? ^
Yes. If you know other real estate investors who may benefit from this service or have access to a real estate investor network, we will pay you $25 for every referral we perform as a result of your referral.

If you referred 10 investors who needed an appraisal, you would make $250.

There is a large potential for earnings. If you are a property manager with 100 investors needing a chattel appraisal, you would make $2500.