There are a host of situations in which you’ll need to value your assets as a small-business owner, and the ATO can provide you with a market value private ruling
If your small business has assets – such as vehicles, factory equipment, or property – it’s important to know when you might need a market valuation done and how to get one you can rely on.
You might need a market valuation of assets when you:
- transfer or sell assets to related parties
- consolidate or change business structures
- pass the asset threshold for the small business capital gains tax concession
- sell your home which has more than two hectares of land
- provide non-cash benefits to your employees
- use the GST margin scheme if you are selling property as part of your business
- consider other transactions involving assets.
You can apply for a market value private ruling from the ATO. Your application can be for them to provide you with a valuation or to confirm a valuation you provide to them. There may be costs involved – refer to the Private rulings and valuations fact sheet for details. If you prefer, your agent can lodge an application on your behalf.
Your private ruling will give you a binding asset valuation you can rely on for tax purposes, apply for a private ruling here.
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