What are Retrospective Property Valuations?
If you’re selling your home or acquired property through inheritance, you’ll need to obtain a retrospective valuation property report.
Also known as a backdated property valuation, a retrospective property valuation indicates the property price at a specific time in the past.
The most common use of a retrospective property valuation report is identifying a property investor’s capital gains tax liability.
The Australian Tax Office (ATO) requires property investors to submit a capital gains tax property valuation report to establish the capital gain they may have made on the sale of their investment property.
There are, however, circumstances other than capital gains tax that may also require you to obtain retrospective valuations, including:
- Separation from a spouse: the value of investment properties must be identified on the date of official separation for distribution purposes.
- Inheritance of properties in a deceased individual’s estate: the value of the property must be identified on the date of the deceased individual’s death for distribution purposes.
In each of the circumstances mentioned above, a backdated property valuation has a significant impact on property owners tax obligations, so you’ll need to obtain accurate valuations from an experienced Certified Practising Valuer.
How Do We Perform Backdated Property Valuation?
A Property Valuer will need to undertake a historical data analysis and a physical inspection to establish a property’s retrospective value.
During the data analysis, our Duo Tax Property Valuers will access historical market value data to give them information about the market conditions when the property was initially purchased.
Property values fluctuate regularly, and these changes can significantly impact the current sale price and the historical valuation of a property.
Once the data analysis is complete, we’ll typically arrange a physical inspection of the property to establish:
- the condition of the property;
- complex or hidden attributes that could not be found through data analysis;
- potential structural and pest issues; and
- the surrounding area and available amenities.
While a physical inspection is not always required, it gives our Property Valuer’s a good picture of details that would otherwise be overlooked.
We’ll then produce an accurate backdated valuation report that you can submit directly to the Australian Tax Office.
Why Choose Duo Tax Property Valuation Services?
Our mission at Duo Tax has always been to help property investors save money where they can.
Retrospective valuations significantly impact an individual’s tax obligation, so it’s necessary to have the valuation process undertaken by certified and experienced Property Valuers.