I run a wedding planning and decor rental company. I am trying to figure out whether and how to value the products that I rent to customers. They are primarily decorative things, as well as dinnerware and some furniture. Seems like Class 12 assets is most appropriate? Many of these items were purchased or transferred as used products. To calculate fair market value, do I base it on what I would get by selling them in their current state? Or the revenue from renting them before they are written off? or the original purchase cost as if they were new?
Hi
From what you have said Class 12 seems correct.
For the fair market value, it would be either the actual cost, for items that were purchased in the year. The balance of the 'transferred' items would be the Fair Market Value - for what you would have paid for them had they been a purchase.
Christine
Hi
From what you have said Class 12 seems correct.
For the fair market value, it would be either the actual cost, for items that were purchased in the year. The balance of the 'transferred' items would be the Fair Market Value - for what you would have paid for them had they been a purchase.
Christine