Stamp Duty & Capital Gains Tax
We work with private customers, solicitors, conveyancers and businesses needing to meet State and Federal requirements, including Office of State Revenue and Australian Tax Office valuations and depreciation schedules, whether current or historical.
Capital Gains Tax
Capitals Gains Tax (CGT) is a tax administered by the Australia Taxation Office (ATO) and is payable where a capital gain has been made on an investment property that has been acquired after September 19, 1985.
By improving your investment property through renovations, additions or perhaps knocking down and rebuilding the entire house, you are increasing its total value, and in turn increasing your capital gains on sale. Conversely if the value of your asset has decreased from the time you purchased to the time you sold the investment it is considered a capital loss. Investors need to determine the increase or decrease in value over the holding period to calculate the Capital Gains Tax implications.
When you hear the term ‘realise’ a capital gain or loss, this simply refers to the fact that a CGT event has occurred and you will need to deal with this event in your tax return. The most common CGT event is when you sell an asset or investment. Gifting a property also triggers a CGT event.
Providing an accurate assessment
A Capital Gains Tax Valuation report is used to help identify the capital increase or decrease of your property asset. A valuation can be conducted when a capital gains tax event occurs or you may choose to have a retrospective CGT valuation when you decide to sell the property.
You may choose to have a valuation conducted when a capital gains tax event occurs or you may choose to have a retrospective CGT valuation conducted when you decide to sell the property.
The ATO warns taxpayers that undertaking their own valuations puts them at risk of incorrectly reporting their tax and may be liable to administrative penalties. McSS can provide you with an appropriate capital gains tax valuation.
Choose your timing
Your capital gains tax can be minimised by choosing your renovations and improvement times carefully.
If you are considering selling an asset on which you have made a gain, you may also like to consider the timing of the sale.
Waiting until 1 July means the potential CGT bill is deferred until the following financial year. This can assist with cash flow by providing an extra 12 months to deal with the tax bill.
Your accountant, solicitor or financial advisor can help you chose the right timing for renovating or selling.
In a normal property sale between unrelated parties, the contract price the property achieves is used to assess the amount of stamp duty payable. However, when a sale is not conducted on the open market but negotiated between related parties, the government needs to ensure that the stamp duty paid is assessed at market value.
The Office of State Revenue requires a Stamp Duty Property Valuation Report, provided by a registered valuer, when businesses or real estate are being passed between related parties (for example, a sale between family members).
Stamp duty valuations are also required where a property is being transferred into a superannuation fund and various trusts and entities.
Regardless of whether there is any money being transferred between the parties, stamp duty still needs to be paid and the amount will be based on the valuation provided. McSS can provide a short-form valuation for private customers, solicitors, conveyancers and businesses that will meet the Office of State Revenue’s requirements.
We are able to provide a cost-effective valuation report within a 48-hour period subject to access, availability and the property being a standard house or home unit.
An honest and personal approach
McSS has been assessing and valuing property for well over 25 years and is well respected within the Sydney property industry. We are proud of the fact that much of our business is built on repeat clients and referrals. We offer the following benefits:
- Registered valuers with extensive experience and formal qualifications
- Adherence to stringent industry standards and a rigorous code of ethics
- Accurate, independent and effective reports
- Obligation-free quote based on your personal needs
- Guaranteed turnaround times to meet the requirements of courts
- Ongoing communication and personal service where you deal directly with the valuer
- In-depth knowledge of the Sutherland Shire, St George and the Sydney metropolitan area.
Offering independent and accurate advice
Contact us today to find out more about how we can help you with your valuation or to request an obligation-free quote.