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