1 March 202008:10 AM - edited 1 March 202008:11 AM
My friend's marital property settlement was finalised last year.
As part of this, an investment property was transferred from the family trust to one of the ex-spouses.
Though this property obtained marital roll-over, a market valuation was required to determine the market value at the time of transfer. The cost of this valuation was paid by the two ex-spouses 50/50.
This was to assist in the parties providing market value consideration for the property so no Division 7A consequences arose from the transfer, due to the property being owned by a trust with a UPE to a private company (messy!!).
Is the cost of this valuation able to be either:
- added to the cost base of the property transferred; or
- deducted as a cost of managing their tax affairs.
Would the answer be different if the property was not subject to the marital roll-over so a taxable capital gain arose on transfer of the property?