Investing the time and effort in creating your own property can be really worthwhile and every taxpayer who has property on their name really should have a property inventory.
Just picture it, your gorgeous off white living room walls have now been turned into something that resembles a bad childís drawing (which they think is artistic!). You go to court without your inventory and the judge decides to side with the tenants because there is no proof that your living room walls were off white to start with. Or maybe you donít have tenants and stay in the property that you own but are wise and have applied for insurance on your property because you donít want to be riddled with unexpected expenses should something happen to your home. You encounter a major flood, fire or constant seeping water damage and your off white living room walls become a musty grey.
Without a property inventory you have no leg to stand on when it comes to arguing with your insurance company about the original state of your living room walls. So, what is a property inventory then? It is a written tally of what a taxpayer owns; the condition it is in, what was paid for the item and the date of payment along with the current value of the item. It should always be done by an inventory clerk and the inventory should be kept somewhere safe, like in a safe deposit box at a bank. (more...)