Current through February 27, 2024
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.
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
