I am selling my family property that I inherited some years ago. It is not my main place of residency and has been let out since I received it as a part of an estate settlement. As this is the case I believe the Tax Office classify it as an investment property.
I realise that I must pay Capital Gains Tax on the amount which is the difference between the value of the property on inheritance and the sale price on disposal, less some associated costs and expenses that have occurred along the way.
When I received the property from the estate, the only valuation that I had was the certificate of valuation from the Government to which the Council rates and Land Tax are based on. These valuations only take place I believe every 3 years.
This valuation did not reflect the true value of the property and was approx. 25% less than the general market value of the property at the time I received it from the estate. I base this on the real estate sales of similar properties at the time in the immediate area.
The property including it's low valuation were included on the list of assets that were required to go through Government probate.
What I would like to know is, what/who determines the true value of the property at the time of taking possession from an estate. Is there any way to adjust the property value to that of what it should have been.
Also as this property is classified as an investment property would there be any GST included in the sale price.
Looking forward to hearing from my trusted HC members on this.
