When is it necessary to carry out property evaluation?

Hi guys,

I have a question in mind for a long time, hope someone can clarify it for me.

I have had a property for 4 years now, I have rented it out after the initial purchase for 3 years and have since moved in and started the renovation. I was thinking of getting a evaluation done but wasn't sure whether it was necessary before the renovation started. I haven't finished renovation (40% done) so I guess I could still get a evaluation done now if it is the best thing to do.

I understand that getting an evaluation done before it's rented out again is definitely beneficial in order to avoid the capital gain, but whether or not it is a good idea to get it done now I am not too sure.

Could someone please advise?

Thank you
Shel

 

You are probably think of getting a valuation done for tax purposes?

Because it was an investment property first CG will be worked out on a time basis when you sell:

CG (or Cap loss) x Non main residence days/total days owned

so no valuation is needed

see s118-185 ITAA 1997