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Capital Gains Tax Valuations

Capital gains tax valuations are required when a capital gains tax event occurs for accounting and taxation purposes. A valuation as at the event date is often required. Our valuation reports are addressed to the ATO for taxation purposes and meet their needs. Also capital gains taxation valuations are used for transferring property from private ownership into superannuation funds. The basic idea is that property which is not your main residence (purchased after 20th September 1985) is subject to a capital gains tax. When you dispose of the property it is called a CGT event. How does the tax actually work??. 50% of the gain becomes income for you (or the companies) next tax return. For example you purchase an investment property for $600,000 and sell it for $800,000. Your capital gain is $200,000. So half of it ($100,000) is part of your next tax return. A CGT valuation is often used when you move out of a residence and it becomes an investment property, or if you move into your investment property and it becomes your principle place of residence.