Capital gains tax (CGT) is a tax that is payable to the ATO if you make a net capital gain on a property. The requirement to pay CGT can be triggered when you sell or gift your property. It will be triggered if you make a net capital gain. You will also be required to pay a CGT if you rent out your former main place of residence.
It is therefore imperative to get your property valued for CGT purposes. A CGT property valuation is essentially a market valuation for tax purposes.
Fortunately, you have come to the right place. We formulate property valuations for capital gains purposes every day. We offer a quick turnaround time at an affordable price and our valuation reports are prepared to the highest standard by Australian Property Institute (API) Certified Practising Valuers (CPV). Our CGT reports are accepted by the Australian Tax Office, accountants and financial planners.
What is capital gains tax?
Capital gains tax (CGT) is a tax payable on investment real estate and other investment property or assets (such as shares) that were purchased or attained after September 1985. The tax is payable to the ATO when you sell or dispose of the property for a higher value than when you acquired it.
On the other hand, if the investment property has deceased in value when you sell it, it will be considered a capital loss. The loss can be used to offset any capital gains you made in the same financial year. It’s in your best interests to obtain a capital gains tax valuation so you can accurately calculate your capital gains tax requirements.
What is a capital gains report?
A capital gains tax valuation report can be based on the current market value or a retrospective valuation. A capital gains valuation report is used to establish the value of your property in the current market. It is also possible to get a retrospective CGT valuation report. A retrospective valuation is a valuation backdated to a particular point in time (for example 30th June 2020).
Why choose us for a CGT valuation?
Capital gains tax is one of the most expensive taxes in Australia. It can be several thousand dollars. As an indication, if you have a modest income of $75,000 and purchased a property for $500,000 that you later sold for $650,000, the CGT payable would be $28,575. An accurate property valuation is therefore extremely important so that you do not pay more tax than you should.
Our property Valuers conduct CGT valuations for a variety of clients including individual investors, businesses and trusts.
Valuations ACT is registered with the Australian Property Institute so we comply with their Code of Conduct. Our entire team of Valuers has at least 20 years of local experience giving you assurance that you are receiving an accurate valuation report.
We are a leader in the valuation sector and Valuers conduct extensive research on the most relevant and comparable sales and rental data using proper property sources.
Other companies that may be cheaper than us often do not carry the correct professional indemnity insurance and they lack access to the best resources. This means their valuations are often inaccurate and could cost you more in tax than what you would have paid in the original fee.
Our Valuers are practiced in completing valuations for CGT purposes and use the best property databases so we can compare your property to the most relevant market sales.
To arrange an inspection give our team a call on (02) 6189 2232.