Former Home to Rental
Former Home to Rental Valuation
When your principal place of residence becomes an investment property, you need a valuation at the date of first rental to establish your cost base.
Overview
What is a Former Home to Rental?
When a property that was your principal place of residence (PPR) is first rented out, the ATO treats the property as having been acquired at market value on the date it first became available for rent. This market value becomes the cost base for any future capital gain calculation. Without a valuation at that date, you may be unable to accurately calculate your CGT liability when you eventually sell.
This is one of the most commonly overlooked valuation requirements in Australian property tax. Many property owners who move out of their home and rent it out are unaware that they need a valuation at that date. Neon Bridge can prepare a retrospective valuation for the date your property first became a rental, using comparable sales evidence from that period.
Who Needs This
Is this valuation right for you?
- Homeowners who have moved out of their principal place of residence and are now renting it out
- Property owners who have moved interstate or overseas and are renting their former home
- Individuals who have purchased a new home and are retaining their former home as an investment
- Accountants and tax agents who need to establish the cost base for a client's former home
- Property owners who rented out their home years ago and have never had a valuation prepared
What We Provide
What is included in your report
- Written valuation report with a stated market value at the date of first rental
- Comparable sales evidence from the relevant period
- Documented methodology consistent with ATO requirements
- Signed report suitable for inclusion in your tax records
- Report prepared by a Chartered Accountant and licensed NSW real estate agent
Documentation
What you need to provide
No site visit is required. We complete your report using publicly available data and the information you provide.
Property address
The date the property was first rented out
Any known improvements made to the property before or after first rental
Copy of the first lease agreement (if available)
Any previous valuations or appraisals (if available)
FAQ
Common questions
What if I rented my home out several years ago and never got a valuation?
That is exactly the situation we specialise in. We can prepare a retrospective valuation dated back to when you first rented the property, using comparable sales evidence from that period. The sooner you get this done, the better, as comparable sales data becomes harder to source over time.
What if I only rented the property for a short period before moving back in?
The six-year rule may apply to your situation, which means you may be able to treat the property as your PPR for up to six years while it is rented. However, you should seek advice from your accountant on whether the six-year rule applies to your specific circumstances. We can still prepare a valuation if required.
Do I need a valuation if I am still renting the property out?
Yes. Even if you have not yet sold the property, having a valuation at the date of first rental on file now means you are prepared when you do eventually sell. It also means you can accurately calculate depreciation deductions if applicable.
Also Available
Related services
Get started today
Ready to order your report?
Submit your enquiry and we will confirm the fixed fee and turnaround time. Your report will be ready within 48 hours of receiving your documentation.
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