Hi peeps.
Is there way to work out the value of a property back in 1994. For tax next year. Suspect I will need to obtain a valuer to get a proper valuation. How does the tax department work out what we will need to pay in CGT? The property was a gift from our grandparent so the transfer amount was probably $1.
Thanking all in advance.
Property was original owned by grandparents back in 1981. Then transferred to cousins names 1994. We are now selling the property.
Ozbargain standard reply. Yeah. But accountants cost money.
No we will do that, but my Cousin is putting pressure to get it valued before transfer of property in 2 weeks. I only just was informed of this request.
edit: ahhh right. kinda worked out what happened.
assuming something along lines of, given block of land, developed it, now selling off some units and want to work out cost base for land?
in which case, u can just call up any friendly real estate agent, (friendly) being the key, and ask for a valuation and explain it is being used to calc cost base for tax.
the self assessment, self reporting system that is the australian tax system means that the earnest is on the tax payer to ensure everything is accurate, failure to do so will result in penalties.
the ato has not many ways to work out what X is unless its digital/someone else has reported it. (think of your paycheck and end of year payment summaries) they cross check ur tax return vs the information ur emplyoer submits and then claims as wage expenses… etc etc.
If it was a gift from your grandparents, there should already be a valuation of the property from that transaction for stamp duty purposes (even though they are likely to be CGT exempt i.e. principal residence or pre- 09/85)
Will see if our grandparents solicitors can chase up the details. But suspect they will need to get it out of archives.
Not sure what state you are in, but it should be in the documentation with the land titles office. You will have to pay to get this documentation to sell any property anyway, so maybe wait until you get the conveyance lawyer for the sale.
We are in Victoria.
@Melb69: It should be included when the lawyer does the title search.
Also, if you are just looking for an estimate (not good enough for the the actual CGT calculation if you sold, but gives you a good idea), another option would be to check the land tax/rates document on your first year of ownership. It should show you the council valuation of the property for that year.
@Reppunkamui: Sounds like we will need an accurate valuation if an estimate isn't enough for tax purposes. Suspect Cousin is wanting to sort out what that CGT is going to before settlement of our sale now. Do you know what part the info would be under the land titles website. Cousins accountant has downloaded the title which just has the title info and proprietors.
@Melb69: Sorry was offline.
I believe in VIC, it should be in the Section 32 document prepared by the conveyancer. Maybe easier to contact the lawyer that drafted the transfer of title for your grandparents, as they would have arranged for the stamp duty payment at the time.
@Melb69: That is why the Torrens land title system exists. But they usually would 1994 is not that long ago TBH.
ozbargain standard response: what did your accountant say?
also, maybe consider calling a friendly real estate and ask for a written valuation back for approximately 1994, they should provide one, u can use this
https://www.ato.gov.au/general/capital-gains-tax/working-out…
might be worthwhile to talk to accountant for real tho, work out how they gifted it to you and how the tax is calculated, for example if they already xfered the asset, whatever cost base they gave it to you at wlould be their disposal value…. might need some documentation and things
if they owned it pre 1985 (memory), then they wouldnt have had paid any CGT
talk to accountant