Announcements
Looking for information on the JobKeeper extension? Check out our answers to common questions the community has been asking.

ATO Community

CGT Market Valuations

Highlighted

Newbie

Views 339

Replies 1

Home & 5 Acres + 10 additional acres of land.

Cost base of land is known as house was built after.

When over 5 acres with a house and a professional valuation is obtained at the time of sale - do you include other known costs such as fencing , dam's etc or are they technically included in the valuation at the end? 

Thank you

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

HI @RWG-CMJ

 

Thanks for getting in touch!

 

There are three methods to valuate property; comparison approach, depreciated replacement cost approach and income-based approach. These assessing methods slightly differ, with all three methods they consider the improvements to the property or assets that could add capital value to the property (such as a house, garage, sheds, paving, fencing and gardens).

 

Experts who assess market value should have specific knowledge, experience and judgment in that particular field. While professional qualifications may add weight to the valuer's opinion, they should also display personal integrity and competence. To ensure the objectivity of the report, the valuer should be independent of the party commissioning the report. The valuation process should be adequately documented; if it isn't, we may not accept the resulting value as a market value.

 

Hope this helps, JodieH.

 

1 REPLY 1
Highlighted

Most helpful response

ATO Certified Response

Community Support

Replies 0

HI @RWG-CMJ

 

Thanks for getting in touch!

 

There are three methods to valuate property; comparison approach, depreciated replacement cost approach and income-based approach. These assessing methods slightly differ, with all three methods they consider the improvements to the property or assets that could add capital value to the property (such as a house, garage, sheds, paving, fencing and gardens).

 

Experts who assess market value should have specific knowledge, experience and judgment in that particular field. While professional qualifications may add weight to the valuer's opinion, they should also display personal integrity and competence. To ensure the objectivity of the report, the valuer should be independent of the party commissioning the report. The valuation process should be adequately documented; if it isn't, we may not accept the resulting value as a market value.

 

Hope this helps, JodieH.