The choice of the appropriate approach depends on the actual use of the property as of the relevant valuation date, not on its intended future use.
For mixed-use properties, such as an owner-occupied two-family house with a rented granny flat, we combine both approaches proportionally.
For the equalisation of accrued gains, it is crucial that both spouses can understand why a particular approach was chosen, in order to avoid later disputes.
In the case of a subsequent change of use, for example if a previously rented apartment is occupied by the owner after the tenants move out, the valuation method to be applied for the current valuation date changes accordingly.
Both spouses should therefore always be informed of actual changes in use in order to avoid misunderstandings in any subsequent valuation.
Please note: the content of this article is provided for general information only and does not constitute legal, tax, financial or investment advice. It is not a substitute for individual advice from a licensed lawyer, tax adviser or financial adviser. Despite careful research, we accept no liability for the accuracy, completeness or currency of the information provided. For specific legal or tax questions, please consult a qualified professional adviser.