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November 2008Common Rental Property Depreciation Misconceptions 118, 120 & 122 Derribong Street Narromine Investment Properties For Sale Download newsletterNews ArchiveOctober 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007
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Cnr. Macquarie & Cobra Sts TEL: (02) 6882 1755 Fax: (02) 6884 2229
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NOVEMBER 2008Smoke AlarmsA reminder to owners that section 19A.3 of the lease agreement states - “A new battery will be installed at the beginning of each new tenancy”. Common Rental Property Depreciation MisconceptionsAccountants, Property Investors and Real Estate Agents are becoming increasingly familiar with the benefits of having a professionally prepared tax depreciation report prepared on residential investment property. In this edition, Walton Smith Consultants will dispel two common misconceptions regarding property depreciation. 1) Should builders profit be included in the preparation of tax depreciation schedules? Yes, builders profit can be included in the cost of construction of an investment property and apportioned to the cost of depreciating assets within the property. Taxation Ruling 97/25 (TR 97/25) paragraph 31 states that “…the builder's profit margin does not form part of the construction expenditure unless the original construction was commissioned from a builder whose charges for the work included such a profit”. In this ruling it goes further to state that “Where the original construction was carried out directly by the then owner, or by that owner using trade subcontractors and perhaps an architect, no such builder's profit was incurred as part of the capital expenditure on construction”. Builders profit can be included in the calculation of the original construction cost for the purpose of calculating the deductions under Division 43, unless you were an owner/builder or the builder did not include a builders profit in the construction cost (speculative housing). 2) Is it worth engaging in a Quantity Surveyor to complete a tax depreciation schedule on a property constructed prior to 17 July 1985 ? Yes, all buildings regardless of age will attract deductions for the decline in value for depreciating assets. Residential investment properties built before 17th July 1985 are not eligible for the Division 43 allowance, but may still be eligible to claim deductions for the decline in value of depreciating assets under Division 40. Many owners of residential investment property constructed before 17th July 1985 are advised by their Accountant that there is little to be gained by commissioning a professional tax depreciation schedule. This is simply not the case. Walton Smith Consultants are yet to inspect an unimproved house constructed before 1985 which has not returned beneficial depreciation result. Walton Smith Consultants “Property Matters” Issue 2 Spring 08 Newsletter
118, 120 & 122 Derribong Street Narromine
Isn't It Time Your Money Started Working For You? Bed 2-3 | Bath 1-2 | Car 2 Located right in the heart of Narromine is the perfect investment opportunity with three modern villas AND a 390.4m2 block of land that already has council approved plans for a fourth villa. Villa 1 features two bedrooms, one bathroom and a neutral sandy colour scheme kitchen. Villa 2 features three bedrooms, one bathroom and a terracotta colour scheme kitchen. Villa 3 features three bedrooms, two bathrooms and a granite colour scheme kitchen. Features * Roomy lounge with tiled meals area * Well-equipped kitchen * Double garages with auto doors and internal access * Watering systems * Secure gate to the front and rear of the property * Separate freehold title and no strata fees or owner's corporation * Villas 1 and 2 currently rented at $200pw and Villa 3 is rented at $220pw
Properties Recently Rented - Keeping you updated on the local rental market
Investment Properties For Sale
Residential Management Fees
Notices To LandlordsWe are currently updating all our landlord details, if you could please contact our office it would be greatly appreciated. Thank you for your assistance. Phone - 6882 1755 / Fax - 6884 2229 / Address - PO Box 30 / Email - pm@rhdubbo.com.au XXXX Whilst all care has been taken by Raine & Horne Dubbo to ensure the accuracy of particulars herein, no warranty can be given by us, and interested parties must rely on their own enquiries. XXXX The next Month End will be 27 November 2008, statements will leave the office on 28 November 2008 and direct deposits should be in accounts by 28 November 2008. XXXX Please advise us if you do not wish to receive any marketing material from our office. Phone (02) 68821755: Fax (02) 6884 2229: Email sales@rhdubbo.com.au XXXX We are currently updating our landlord email addresses, if you have an email address we would love to include you to our list. Also please advise if you would prefer to receive this monthly newsletter by email. Please forward your email address to pm@rhdubbo.com.au. Thank you for your assistance. *********************************** Click here to download and read this newsletter in PDF format. Please note this document requires Acrobat Reader. This program can be downloaded free by clicking here.
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cnr Macquarie & Cobra Sts, Dubbo, NSW 2830
T: (02) 6882 1755 | F: (02) 6884 2229
Email: marketing@rhdubbo.com.au
© Raine & Horne Dubbo 2005
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