Nev. Admin. Code § 372.538 — 372.538

NAC 372.538    Method for determining actual cash value of property other than
motor vehicle; retention of books and records substantiating actual cash value. ( NRS 360.090 , 372.368 ,
372.725 ,
372.735 ,
374.373 ,
374.725 ,
374.740 )
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)