If your 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.

When do you need a market valuation of your assets?

It is important to get a valuation 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.

How to apply for a market value private ruling?

You can apply to attain a market value ruling from the ATO which will give you a binding asset valuation you can rely on for tax purposes. Your application can be either for the ATO to provide you with a valuation, or to confirm a valuation you provide them. Alternatively, to ensure your application is correct you can lodge an application through us.

Sourced from: https://www.ato.gov.au/Newsroom/smallbusiness/General/Valuing-your-assets/?sbnews20160217

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