Capital Gains Tax (CGT) is applicable to all investment real estate (and other investment asset classes) purchased or acquired after September 1985. The tax is charged when you sell your property or asset and it has increased in value from the time of its acquisition. Conversely if the value of your asset has decreased from the time you purchased to the time you sold the investment it is considered a capital loss. Investors need to determine the increase or decrease in value over the holding period to calculate the capital gain tax implications.
A capital gains tax valuation report is used to help identify the capital increase or decrease of your property asset. The valuation can be current or retrospective. Current valuations are used to determine the value of your asset in the current market. A retrospective valuation is used to determine the value at a previous date or point in time.