ATO Community

Re: SMSF Property Valuation

Ask a question

Enthusiast

Views 231

Replies 2

I have a question regarding the property valuation.

 

When the independent valuer value the investment property held by the SMSF, they normally include the depreciable assets inside the property, such as hot water system and oven. When we record the market value of the property, do we use the figure in the valuation report directly or we deduct these depreciable assets since the fund accounts have already recorded them at written down value?

 

If we use the market price directly, will the fund assets value be overstated?

 

Many Thanks!

1 ACCEPTED SOLUTION

Accepted Solutions

Best answer

Anonymous

Replies 1

Hi @sandyaspire2 

 

You use the value determined by the independant valuer because you must value the funds assets at market value for the purpose of preparing your fund's accounts, statements and the SMSF annual return.

 

You do not deduct any depreciable items from the valuation of the property, otherwise you would be understating the market value of the property.  

 

When you use the valuation provided for the property the depreciable assets are not overstated because the valuation is for a totally seperate and distinct purpose and it does not effect the written down value of the assets in the accounts.  

 

Further information can be found on the ATO website.

 

ATO super line - 13 10 20

2 REPLIES 2

Best answer

Anonymous

Replies 1

Hi @sandyaspire2 

 

You use the value determined by the independant valuer because you must value the funds assets at market value for the purpose of preparing your fund's accounts, statements and the SMSF annual return.

 

You do not deduct any depreciable items from the valuation of the property, otherwise you would be understating the market value of the property.  

 

When you use the valuation provided for the property the depreciable assets are not overstated because the valuation is for a totally seperate and distinct purpose and it does not effect the written down value of the assets in the accounts.  

 

Further information can be found on the ATO website.

 

ATO super line - 13 10 20

Highlighted

Enthusiast

Replies 0

Hi MVF,

 

Thank you so much for your reply, much appreicated!

Top Solution Authors