I objected to the Land Value and they agree they were ripping me off !

Good news today - got a email today after I objected to a land valuation at a IP in Sydney I have and they have reduced the land value by 16% !

Goes to show - never except there valuation as a done deal - always check the com-parables they used

I assume that this now means a refund on the land tax I have paid and a reduction in council rates

PS - they didn't exactly use the terms "we were ripping you off " in there email

 

Have you told your lender?

 

Any refunds will be assessable income to the extent you have claimed deductions in the past.

 

Land valuation should not affect a lender valuation. Unimproved land value and property value are not related.

Good pickup Rob...Requiring an amendment of the prior year not a assessable adjustment in the present year

 

My understanding is assessable income in the year recouped (refunded), s.20-30.

i.e. no amending prior year assessments, which I also understand to be no limitation by amendment period

 

Ok i'm a little confused now - Do I still pop open the champagne bottle tonight or not ?

 

Any refunds of land tax from years when you claimed deductions as an IP expense will be assessed.

This means income tax on the refund.

Maybe choose a more modest brand of champagne.

 

So I have to pay tax on my refund - *******s !

I still get a refund on my council rates right ?

 

Bizarre that arrears of land tax are deductible only by amendment and limited to amendment periods but the assessable recoupments rule applies contrary.

The drafting of tax law requires a degree in *******ry

 

Depends on state law....Does it have a non-amendment period ?
ie My *******ry rule may apply ? I have seen valuations allowed on objection and the OSR refused to amend as it was out of time....OSR generally do amend not sure about councils

 

And NSW uses a three year average so the valuation change for land tax will be smoothed.

Champers may not be in the budget

 

I'll give the OSR a call and see what exactly happens now - i'll keep everyone posted

 

Same deal.

If deducted in a prior year then any recoupment/refund is assessable for income tax.

You can deduct the costs of amending your prior year state and council land tax/rates assessments. e.g. travel, phone calls, home office hours.