PROPERTY VALUATION SERVICES
VIC | QLD | WA
Valuation Services: EXPERT CAPITAL GAINS TAX - CGT VALUATION REPORTS
VIC | QLD | WA
Capital Gains Tax (CGT) is a tax you pay to the government when there is a capital gain or appreciation in the value of your asset.
When it comes to selling properties such as investment properties, holiday homes, and rental properties, capital gains tax (CGT) should be on your radar. You might be obligated to pay CGT on any capital gain if you sell a property. It's always best to consult with a tax professional to ensure you know all CGT rules and requirements.
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The amount of CGT payable is calculated based on the difference between a property's cost base and its sale price. The cost base includes the original purchase price and any other costs associated with buying and owning the property, such as stamp duty, legal fees, and any improvements made to the property. The sale price is the total amount received minus any costs associated with the sale, such as real estate agent fees.
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If you have owned the property for over 12 months, you may be eligible for a 50% CGT discount. This means that only half of the capital gain will be subject to tax. However, if you have owned the property for less than 12 months, you will not be eligible for the discount, and the total amount of the Capital Gain will be subject to tax.
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In addition to the CGT discount, some other concessions and exemptions may be available, depending on the circumstances of the sale. For example, if you were selling a property that was your primary residence, you may be eligible for the principal place of residence exemption, meaning no CGT will be payable on the sale.
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It's essential to keep a close eye on the cost base of your property and any expenses you've incurred during your ownership. This will help you accurately calculate any potential capital gain or loss when you sell. Your accountants and financial advisors will appreciate you taking the time to keep detailed records. And when the time comes to get an independent property valuation, we're here to help. Our team of expert valuers will provide you with a fair, accurate and equitable valuation report, giving you peace of mind and confidence in your property's value.
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"Why are Independent Property Valuers for CGT purposes important?" you ask. The answer is relatively straightforward. Our Retrospective Market Valuation reports play a crucial role in determining the amount of Capital Gains Tax that needs to be paid because it forms the predominant component of the original cost base.
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What are Retrospective Market Valuation reports? In a nutshell, they are Valuation Reports for CGT purposes in which a Valuer is required to investigate historical markets and sales to determine the Market Value of a Property at a point in the past. These reports are necessary when a primary residence evolves into a rental or investment property.
In other words, when a decision is made to turn a primary residence directly or indirectly into a rental or investment property, thereby triggering the Capital Gains Tax, choosing a Valuer with the right experience is critical.
"Capital Gains Tax (CGT) is the tax you pay when you make a profit from selling or otherwise disposing of certain capital gains tax assets."
The Australian Tax Office
Your Market Valuation for CGT purposes must be performed by a qualified, Certified Practising Valuer (CPV) because taxpayers who present to the ATO unapproved appraisals– or get advice from people without adequate qualifications – risk incorrectly reporting their tax and may be liable to pay penalties, and just as bad, become buried in paperwork, who would want that?
If you're in need of a valuation for Capital Gains Tax purposes, our team of local Valuers are here to help. We're experts in the field and can provide current market valuations or Retrospective Market Valuations. It's always a good idea to speak to your accountant and financial advisors before making any decisions, and we're more than happy to liaise with them on your behalf.
So why not get in touch with us today to discuss your valuation requirements?​
Talk to us about your valuation requirements. We are suitably qualified and can also liaise with your accountant to undertake current market valuations or Retrospective Market Valuations for Capital Gains Tax purposes. Contact either our Melbourne or Brisbane-based location to find out more.