Capital Gains Valuations

A capital gain is the proceeds you receive upon selling an asset, over and above the cost you outlaid to purchase the asset initially.  Conversely, a capital loss is where the sale value of the asset is less than its initial acquisition cost.

Capital gains tax is the tax payable on the capital gain of a sale of an investment property acquired after 19 September 1985.  You are also liable for capital gains tax if a property is ‘gifted’ by you to another party.  It is important to note that capital gains tax does not apply to your principal place of residence.

The amount of capital gains tax payable on a property transaction is calculated by the Australian Taxation Office based on the amount of profit that was generated over the holding period, of which, a property asset was used for investment (income producing) purposes.  It is therefore a legal requirement that this assessment of market value is completed by a professionally qualified, registered valuer to ensure accuracy.

Times at which we suggest you should obtain a capital gains valuation, are as follows:

1. When you are moving our of your principal place of residence to place it on the market for rent (turning it into an investment property), as this date then becomes the ‘starting point’ for any calculation of future capital gain or capital loss.
2. When you sell  an investment property, as this becomes the ‘end point’ for any calculation of capital gain or capital loss.
3. When an investment property becomes your primary place of residence, as this date then becomes the ‘end point’ for any calculation of capital gain or capital loss.

It should be noted, if you did not obtain a valuation at the initial ‘starting point’ date, a retrospective (back dated) valuation report can be provided (please see the ‘retrospective valuation’ section of our services page).

Powerhouse Property Professionals are experienced in providing capital gains valuations which meet the legislative requirements of the Australian Taxation Office.  As industry-leading valuers, Powerhouse Property Professionals will ensure you receive an accurate representation of the value of your property to ensure you do not pay more tax than you need to, so please phone us on 1300 097 912 or fill out our quotation request form below if you wish to have a capital gains taxation valuation carried out.