Simply SMSF Audits – Professional SMSF Audit Services

Simply SMSF Audits

Independent SMSF Auditing: Delivering Trusted and Professional Services

Understanding the complexities of SMSF asset valuations, especially in the context of property assets, can be challenging. ​This guide comprehensively addresses the specific instances you might encounter during an SMSF property valuation process.

SMSF Asset Valuations: Addressing Specific Situations

Understanding SMSF asset valuations is crucial, particularly when it comes to property. Following our comprehensive overview in SMSF Asset Valuations: The Basics and the ATO's Perspective, this article focuses on specific scenarios. We delve into the different types of evidence that trustees can leverage to determine market value, ensuring your SMSF meets the Australian Taxation Office's (ATO) expectations. This is an invaluable guide for professionals working with SMSFs and dealing with property-related valuations. We provide clear, comprehensive insights into each specific situation.

Property Valuations for Self Managed Super Funds

Understanding Trustee(s) Declaration of Market Value

When it comes to Self Managed Super Fund (SMSF) asset valuations, trustees often declare the market value based on comparable property sales within several months of the reporting date. This approach, however, is not without its stipulations. According to the Australian Tax Office (ATO), a Trustee's declaration of market value, which does not provide comparable sales, is deemed insufficient as objective evidence. If the trustee’s methodology for determining the market value is based on a 5% return (a common scenario for residential or commercial properties), it could be a credible measure of valuation determination.