Valuation of Chattels (Appliances)

Value of Chattels

It is difficult to place a value on appliances unless they are brand new and being sold by a builder. Then, they are worth $10,000. Five years later, what are they worth? They still work but the vendor’s warranty (Sears) and the manufacturer’s warranty (KichenAid) are both gone. So, slide them down the driveway and place a “for sale” sign on them. No warranty, of course (unless one is negotiated).

One half of the life expectancy has gone, but who knows what they are then worth? Guessing the value would place them in the $1,000 to $2,000 range.

The older they get, the lower the value. When PST applied to chattels in real estate transactions, the most frequent allocation was $1,000 to the chattels and the balance to the real estate. That meant that PST in the amount of 7% and then 8% would have to be paid ($70 to $80).

Now, there is no HST on chattels, and consequently no allocation is required. It would however, be helpful to know the number, if something goes wrong in the future, since it would place a limit on the value and quantify the issue.