Before your home becomes a rental
Record when income-producing use starts and keep evidence of the property's condition. Ask your accountant whether the home-first-used-to-produce-income rule applies to your circumstances and whether a market valuation at that date will be needed.
Why the date matters
A current valuation answers what the property is worth now. It cannot automatically substitute for value at the date relevant to your tax treatment. The original purchase price, an agent's suggested rent and a later sale price are also different pieces of information.
Records to keep
- Purchase documents and ownership details.
- Occupancy and rental history.
- Dated interior and exterior photographs.
- Floor plans, condition reports and renovation invoices.
- The accountant's instructions identifying the relevant tax purpose and date.
If the conversion happened years ago
Tell the valuer what records you still hold and what changed after the relevant date. A retrospective valuation examines historical evidence; it does not pretend an inspection took place in the past. The available evidence determines the assignment's limitations.
Read about CGT-purpose property valuations before requesting a quote. A depreciation schedule concerns costs and assets for deductions, which is a separate task from assessing market value.
Frequently asked questions
Does every rental conversion reset the cost base?
No. Your accountant must confirm whether the relevant rule and all its conditions apply.
Should I order the valuation before speaking to my accountant?
Confirm the purpose and date first so you do not pay for a report addressing the wrong question.
Sources and further reading
- ATO: Treating a former home as your main residence — Main residence choices and the relationship to first income-producing use.
- ATO: Market valuation for tax purposes — Tax valuation evidence, purpose and documentation.
Arrange the right report
Explore cgt valuations with Propti. Send the property address, purpose, required date and recipient’s instructions when you request a property report quote.