The ATO has issued an information sheet to help taxpayers get their property valuations right.
They say that practitioners or their clients can apply for a market value private ruling, by either:
- asking the ATO to provide a valuation (they will be required to pay for the work of the valuer)
- providing the ATO with a valuation and asking them to confirm it – this generally costs less, provided the valuation meets the ATO’s requirements.
There are several advantages to requesting a market value private ruling, as opposed to obtaining a private valuation, as a market value private ruling:
- gives the client greater certainty about their tax matters
- is binding advice that the client can rely on
- is completed by a professional valuer and the client can be involved in the selection and appointment of that valuer
- removes the risk of providing the ATO with a valuation that does not meet its requirements, which could lead to further costs for the client.