Effective Tax Planning Strategies

 All Australians have the right to structure their financial affairs so that tax is kept to a minimum.  This is often referred to as tax-effective investing or tax planning.  

Property is generally kept in different forms of ownership which usually depends on the tax effectiveness of each form.  The most common form is when a property is owned by an individual.  Alternative ownership structures include companies, trusts, and self-managed superannuation funds.  

At Independent Property Valuations, we often receive instructions from accountants to value for individuals and Self-Managed Superannuation Funds (SMSF’s). The ATO’s website states the requirements for the valuation of commercial property assets for SMSF’s below:

You need to value the assets of the fund at their market value for the purpose of preparing your fund's accounts, statements, and the SMSF annual return.

Market value is the amount that a willing buyer of the asset could reasonably be expected to pay to acquire the asset from a willing seller if all the following assumptions were made:

• That the buyer and the seller dealt with each other at arm's length in relation to the sale
• That the sale occurred after proper marketing of the asset
• That the buyer and the seller acted knowledgeably and prudently in relation to the sale

 Apart from preparing and lodging your annual accounts and, if required, transfer balance account reports, you will also need to value assets:

•   If your fund has investment dealings with, or sells assets to, a related party
•   If you need to determine the percentage of in-house assets in your fund
•  On the commencement day of a pension
•  If your fund transfers a collectible or personal use asset to a related party – in this case, the valuation must be done by a qualified independent valuer

When engaging our services, we aim to make the whole process as simple as possible.  We organise the inspection, obtain the title documents and plans then proceed to research the market.  The report is then issued so that the reporting process can be completed.

 At Independent Property Valuations, we are also experienced in providing reports for Transfer Duty and Capital Gains Tax reporting.  The trigger for these types of reports include the sale of a property, a transfer between related parties (off-market), or change of use from an investment to principal place of residence (PPOR).  

 Whatever your requirements, call us to discuss your client’s needs.  We believe in working with our clients to achieve the best possible results every time.