Is a gift of property to my child taxed as if I sold it?

For capital gains tax, generally yes. Section 116-30 treats you as receiving the property’s market value at the date of the transfer, and for a gift that value is generally also your child’s cost base. Your accountant can tell you how this applies to you.

Can I sell my house to my daughter for less than it is worth?

Whatever price you agree, if you are not dealing at arm’s length and the price is below market value, capital gains tax generally uses market value instead. A valuation at the date of the transfer is the clearest evidence of that value.

Why is a family transfer quoted rather than a fixed fee?

Stamp duty on these transfers is assessed separately by each state or territory revenue office, so we quote them first. We confirm in writing whether we can take it on, with the valuer, fee and timing, and nothing is booked or charged until you accept.

Can you value a transfer that happened years ago?

Yes. The property is valued as it was on the date of the transfer, using sales from around then. Photos, plans and invoices with dates help the valuer show what the property was like at the time.

Do you value property for a separation or divorce?

No. We do not take on family law or court work, including property settlements after a separation.

Property Valuation for a Gift or Sale to Family

Valuation for a gift or sale to family

If you give property away, or sell it to someone you are not dealing with at arm’s length (often a family member) for more or less than market value, capital gains tax generally treats it as sold for its market value at the date of the transfer (section 116-30). A valuation at that date may be useful as evidence of that figure. Stamp duty on these transfers is assessed separately by each state or territory revenue office, so CGT Property Valuations by APA quotes them first.

A gift to a child, or a sale to a relative at a friendly price, can feel like a private matter. For capital gains tax, though, the price on the contract is not always the figure the law uses. This page explains when market value replaces the price, which date the property is valued at, and how we handle these requests.

How capital gains tax treats these transfers

Section 116-30 of the Income Tax Assessment Act 1997 uses market value instead of the price in two common cases:

A gift. Nothing is received for the property, so the person giving it is generally treated as receiving its market value.
A sale that is not at arm’s length. If you are not dealing with the buyer at arm’s length, which is often the case with a family member, and the price is more or less than market value, market value is generally used instead.

For a gift, that market value is also generally the new owner’s cost base, so the figure matters to both of you.

The test is a hypothetical sale, not the real one. The question is what the market would have paid on the day, whatever price was written into a contract between family members. Your accountant decides how these rules apply to your transfer, including whether you and the other person are dealing at arm’s length.

Which date is the property valued at?

The time of the CGT event. For a sale under a contract, that is generally the date of the contract, not settlement (section 104-10(3)); with no contract, as with a gift, it is when ownership changes. If there is a contract and a later settlement, tell us both dates, and your accountant confirms which one to use.

If the transfer has not happened yet, talk to your accountant about timing before you ask for a valuation. The ATO’s guide says a valuation for a future date is not acceptable for tax, and a value at today’s date describes today’s market, not the market on the day the property changes hands.

If the transfer happened years ago, the property can still be valued as it was on that day, using sales of comparable properties from around then. See valuing at a past date.

Why we quote family transfers first

We quote these transfers before anything is booked. This is how a request works:

Request online and choose “I am transferring it to family” as the reason. It takes about two minutes.
Tell us every purpose the report is for and who will rely on it. The ATO’s guide warns that difficulties are likely when a valuation prepared for a different purpose is relied on.
We look at the property, the date and those purposes, then confirm in writing whether we can take it on and, if we can, the valuer, the fee and the timing.
Nothing is booked or charged until you accept the quote.
You receive a signed PDF report by email, reviewed and signed by a property valuer.

A report can be relied on by the client named in it and anyone we agree to in writing. If both of you, or both of your accountants, will rely on it, say so at the start.

What to send with your request

the address and the type of property
the date of the transfer, and the contract and settlement dates if there is a contract
photos from around the date, including any sales or rental listing
plans, approvals and invoices for renovations or extensions, with dates
for apartments and townhouses, strata records of any major works
if the property is rented, the lease and the rent at the time

Records of the property as it was on the day help the valuer most, especially if it has changed since. How property is valued for CGT explains what the valuer does with them, and our fixed fees for other situations are on the pricing page.

What we do not cover

We do not value property for family law matters, including property settlements after a separation, or for court proceedings. We value property in New South Wales, Victoria, the ACT and the Northern Territory only.

We value property. We do not give tax or legal advice. Your accountant advises on capital gains tax, and your conveyancer or lawyer on duty and the transfer itself.