Is it worth getting a valuation?

[SkyIsTheLimit]

Hi Everyone

We purchased our PPOR 5 years ago. In September last year, it became our IP and we purchased another property which we now obviously live in.
We never got a valuation on the now IP when we moved out of it. Is it too late to get it valued for Capital Gains purpose in the future, if we ever sell??

 

[Peter_Tersteeg]

A registered valuer should be able to back date an estimate without too much trouble, just explain what you're doing and why.

By getting a valuation done you avoid any potential issues with the ATO when you do sell the property.

 

[pwinne]

A registered valuer should be able to back date an estimate without too much trouble, just explain what you're doing and why.

By getting a valuation done you avoid any potential issues with the ATO when you do sell the property.

hello, I have that exact problem right now.

moved out of my PPOR (and rented it out) in 2003, and rented, then purchased my new PPOR in 2007, selling my old PPOR (now rental), in Jan 2011.
I need a valuation on my old PPOR in 2007.

So a registered valuer, or RE that is a registered valuer can assist?

Cheers

 

[jrc]

hello, I have that exact problem right now.

moved out of my PPOR (and rented it out) in 2003, and rented, then purchased my new PPOR in 2007, selling my old PPOR (now rental), in Jan 2011.
I need a valuation on my old PPOR in 2007.

So a registered valuer, or RE that is a registered valuer can assist?

Cheers

I think you will find uner the legislation that you need a value at the date the property first became income producing, although you should be able to cover it with your PPOR exemption until you bought your new PPOR

 

[brucea]

I think you will find uner the legislation that you need a value at the date the property first became income producing, although you should be able to cover it with your PPOR exemption until you bought your new PPOR

Are you sure? Got a link? I thought you simply pro-rated the gain when the property is eventually sold. i.e. if it was your PPOR for 40% of the days it was owned then only 40% of the gain is exempt.

 

[jrc]

Try Section 118-192 ITAA 1997

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.192
Special rule for first use to produce income
(1) There is a special rule if:

(a) you would get only a partial exemption under this Subdivision for a * CGT event happening in relation to a * dwelling or your * ownership interest in it because the dwelling was used for the * purpose of producing assessable income during your * ownership period; and

(aa) that use occurred for the first time after 7.30 pm, by legal time in the Australian Capital Territory, on 20 August 1996; and

(b) you would have got a full exemption under this Subdivision if the CGT event had happened just before the first time (the income time ) it was used for that purpose during your ownership period.

(2) You are taken to have * acquired the * dwelling or your * ownership interest at the income time for its * market value at that time.

(3) If your * ownership interest in the * dwelling * passed to you as a beneficiary in a deceased estate, or you owned it as the trustee of a deceased estate and the * CGT event did not happen within 2 years of the deceased's death, you apply this Subdivision as if:

(a) you had * acquired the interest as an individual and not as a beneficiary or trustee of a deceased estate; and

(b) for applying the formula in section 118‑185, your non‑main residence days were the number of days in your * ownership period when the dwelling was not the main residence of an individual referred to in item 2, column 3 of the table in section 118‑195.

 

[brucea]

Thanks jrc, so you're confirming that the OP need only have the purchase price, the sale price and the number of days occupied as principal place of residence?

 

[Terryw]

Thanks jrc, so you're confirming that the OP need only have the purchase price, the sale price and the number of days occupied as principal place of residence?

Hi Bruce

Look at subsection 2 above

(2) You are taken to have * acquired the * dwelling or your * ownership interest at the income time for its * market value at that time.

I take this as needing a valuation to be done to determine market value at the time of the property first producing income.

 

[brucea]

Look at subsection 2 above

Thanks Terryw,
I've gone to the pdf of the ITAA and read it again there. Makes a lot more sense when formatted

 

[Terryw]

Formatting does make it easier.

Also, you may have been thinking about the reverse. that is moving into an investment property. In this case I think you would not need a valuation to be done, with the formular based on number of days the property was lived in.

That would be s118-195
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s118.185.html