Valuations of Partially Completed Investment Properties:

The International Valuations Standards Council have released a report detailing methods of valuing investment property – Important to note: The market value of a partially completed investment property will reflect the expectations of market participants of the value of the property when complete, less deductions for the costs required to complete the project and appropriate adjustments for profit and risk. The valuation and all key assumptions used in the valuation should reflect market conditions at the valuation date. It is inappropriate to estimate the market value of a partially completed investment property solely by reference to the project plan or feasibility study produced at the commencement of the project.

The full article can be found at http://www.ivsc.org/pubs/gn17-2010.pdf

1. In Romanin vs Commissioner of Taxation the ability to claim a tax deduction for legal expenses has been clarified in favour of the taxpayer – the assessment is based on the “….character of the advantage which the taxpayer sought to bring the proceedings was on a revenue account….”.

2. In Carlos Sanchez vs C of T, the ability to claim overseas travel expenses has been further clarified in favour of the taxpayer who was a travel agent.

3. With the withdrawal of TR 2001/6W – it has been left open as to how commercial web site development and maintenance costs should be claimed as the commissioner has provided no opinion on this matter.  We would suggest a cautious approach in this concern.

4. ATO ID 2009/71 identifies that interest expense incurred on borrowing money to acquire an option that does not in itself provide for the payment of any income is not a deductible expense.

5. A guide to all foreign exchange rates, daily, monthly and annually can be located at -

http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/22855.htm