A date-of-death valuation gives a property's market value on the day the owner died. Executors use it to administer the estate, and it can set the beneficiary's capital gains tax cost base: for example, where the deceased acquired the property before 20 September 1985, or it was their main residence just before death and not producing income (other conditions apply). An indicative desktop assessment is $99 + GST ($108.90 incl. GST); an inspected report is $495 + GST ($544.50 incl. GST).
When is the date-of-death value the cost base?
Under section 128-15 of the Income Tax Assessment Act 1997, a beneficiary or legal personal representative is taken to have acquired an inherited property on the day the person died, and the first element of its cost base is its market value on that day in cases including:
- the deceased acquired it before 20 September 1985; or
- it was the deceased's main residence just before death, was not then being used to produce income, and the deceased was not an excluded foreign resident.
In other cases the cost base generally carries over from the deceased. Your accountant or the estate's lawyer decides which applies.
Two-year main residence exemption
A beneficiary or executor may be able to disregard a capital gain on the deceased's home if it is sold within two years of death (or a longer period the Commissioner allows) and other conditions are met. A value at the date of death and, if needed, at the date of sale helps the accountant work this out. A second date for the same property is $149 + GST ($163.90 incl. GST).
Which report suits?
An indicative value of a standard home, unit or vacant lot: Desktop Property Assessment $99 + GST ($108.90 incl. GST). Where the value will set a beneficiary's cost base, consider an inspected report. A complex, high-value or disputed estate: Tax, Transfer & Compliance Valuation $495 + GST ($544.50 incl. GST), or a quoted legal valuation where the estate is contested.
Questions
Do executors need a property valuation?
Often. A market value at the date of death helps administer the estate and can set the beneficiary's CGT cost base. The estate's lawyer or accountant decides what is needed.
Can you value a property at a date of death years ago?
Yes. A retrospective valuation uses sales evidence from around the date of death.
Sources
This guide is general information, not tax, financial or legal advice. We value property; your accountant, auditor or lawyer decides how a value is used and what evidence they accept. The ATO does not approve or accredit valuers or valuations for CGT purposes.