If the investment property was owner built over 10 years ago, and there are no receipts or records of exactly how much it cost, how would one go about getting an evaluation in order to reduce the gap between the cost versus value?
Who would one need to speak to in order to estimate those two values? An accountant/lawyer?Or is the Council Rates value used as the market/current value?
Would I need to fill out this form and take it with me: http://www.ato.gov.au/content/downloads/IND00313614n4151GLwsheet.pdf
?
Lawyers can't even estimate their own costs, so they wouldn't be able to help.
With tax you have to substantiate your claims. If you don't have receipts then I don't think there is much scope for estimating the costs. This is why it is important to keep all receipts for all properties for ever – even after you have died as your heirs will have an even harder time.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like a tough one…
Maybe talk to a property valuer, and see if you can get them to do a retrospective desktop valuation based on comparable sales, using data from 10 years ago.
It may be a long shot, but If yes then you'll get your valuation. If no, then you've only lost some time and the cost of a phone call.
Oh and if you try this, don't forget to let us know how you go! : )
grimnar wrote:Sounds like a tough one…Maybe talk to a property valuer, and see if you can get them to do a retrospective desktop valuation based on comparable sales, using data from 10 years ago.
It may be a long shot, but If yes then you'll get your valuation. If no, then you've only lost some time and the cost of a phone call.
But a valuation will only help in establishing the value. What is needed is proof of costs to help determine the cost base. These would be totally different.
There are rules for when this happens – ‘dog ate my homework’ type rules where people lose receipts etc. It will be especially difficult for an owner builder.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thank you all!!!
I've contacted a few accountants and they all recommend I see a different person … or do they?
These are the people they suggested I see, are they al the same???
property surveyor
independent valuer
quantity surveyer
property valuer
One of them suggested this site: http://www.bmtqs.com.au/ConstructionCostCalculator.aspx
Does it look promising?
You may be better off getting in contact with a quantity surveyor than a valuer – the old chestnut: cost vs value.
not_so_lucky wrote:Thank you all!!!I've contacted a few accountants and they all recommend I see a different person … or do they?
These are the people they suggested I see, are they al the same???
property surveyor
independent valuer
quantity surveyer
property valuer
One of them suggested this site: http://www.bmtqs.com.au/ConstructionCostCalculator.aspx
Does it look promising?
Doesn’t sound promising to me. Ask these accountants under what authority they are saying this.
See s 121-20 ITAA 1997
http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s121.20.htmlTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:not_so_lucky wrote:Thank you all!!!I've contacted a few accountants and they all recommend I see a different person … or do they?
These are the people they suggested I see, are they al the same???
property surveyor
independent valuer
quantity surveyer
property valuer
One of them suggested this site: http://www.bmtqs.com.au/ConstructionCostCalculator.aspx
Does it look promising?
Doesn't sound promising to me. Ask these accountants under what authority they are saying this. See s 121-20 ITAA 1997 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s121.20.html
Thank you Terry for that link.
Does the below mean that a valuation could be sufficient?
(5) If the necessary records of an act, transaction, event or circumstance do not already exist, you must reconstruct them or have someone else reconstruct them.
Example: Your capital gain or capital loss from a CGT event may depend on the market value of property at a particular time. To record that market value properly, you may need to get a valuation done.
not_so_lucky wrote:Terryw wrote:not_so_lucky wrote:Thank you all!!!I've contacted a few accountants and they all recommend I see a different person … or do they?
These are the people they suggested I see, are they al the same???
property surveyor
independent valuer
quantity surveyer
property valuer
One of them suggested this site: http://www.bmtqs.com.au/ConstructionCostCalculator.aspx
Does it look promising?
Doesn't sound promising to me. Ask these accountants under what authority they are saying this. See s 121-20 ITAA 1997 http://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/s121.20.html
Thank you Terry for that link.
Does the below mean that a valuation could be sufficient?
(5) If the necessary records of an act, transaction, event or circumstance do not already exist, you must reconstruct them or have someone else reconstruct them.
Example: Your capital gain or capital loss from a CGT event may depend on the market value of property at a particular time. To record that market value properly, you may need to get a valuation done.
But, a valuation will only establish the value of the building. This won’t necessarily be what it cost you to construct. You might need to do several things such as valuation, QS report, go back over credit card statements, loan withdrawals etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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