Nev. Admin. Code § 372.538

Current through September 16, 2024

Section 372.538 - Method for determining actual cash value of property other than motor vehicle; retention of books and records substantiating actual cash value

1. Except as otherwise provided in NAC 372.539, for the purposes of NRS 372.368 and 374.373 and NAC 372.536, the actual cash value of property which has been repossessed is:

(a) If the retailer sells the repossessed property in an arm's length transaction, the sales price of the repossessed property, less the direct cost of refinishing or restoring the property to saleable condition before the sale and any direct auction expenses paid to a third party; or

(b) If the retailer places the repossessed property into his or her resale inventory, the wholesale value of the property as recorded by the retailer in the records of the retailer's resale inventory, less the direct cost to repossess the property and the direct cost of refinishing or restoring the property to saleable condition.

2. Except as otherwise provided in NAC 372.539, if a retailer repossesses property sold by the retailer, the retailer must retain with the books and records of the retailer documentation sufficient to substantiate the actual cash value of the property at the time it was repossessed, including, without limitation:

(a) If the property is sold at auction or to a person who purchases the property for the purpose of resale, sales invoices for that sale;

(b) Pictures documenting the condition of the property at the time of repossession;

(c) Inspection documents prepared by the retailer at the time of repossession documenting any damage to the property or any parts missing from the property;

(d) Any receipts from a third party for the refinishing or restoring of the property to saleable condition before resale;

(e) Any receipts from a third party for direct auction expenses; and

(f) If the property is placed in the resale inventory of the retailer, accounting records documenting the recorded wholesale value of the property at the time it is placed in the resale inventory of the retailer.

Nev. Admin. Code § 372.538

Added to NAC by Tax Comm'n by R191-18, eff. 12/19/2018

NRS 360.090, 372.368, 372.725, 372.735, 374.373, 374.725, 374.740