Hi,
Is a taxpayer entitled to claim deductions on interest, rates, gardening, insurance etc (regular rental property deductions) while the property is being advertised for sale? The ATO website says it is okay while it is being adversited for rent, but what about sale? What happens to those costs? In this case, the sale process took 6 months. And the sale was a capital loss (reduced cost base provisions apply).
Thanks
Annonymous
Hi @atoquestions2,
If the property is not being rented or is not genuinely available for rent, expenses incurred would need to be looked at under elements of the cost base and reduced cost base.
You may be able to include them into the cost base.
Please use the links for further assistance.
Links-
Cost base.
Working out your capital gain or loss.
MyTax instructions capital gains/losses.
All the best.
Hi @atoquestions2,
If the property is not being rented or is not genuinely available for rent, expenses incurred would need to be looked at under elements of the cost base and reduced cost base.
You may be able to include them into the cost base.
Please use the links for further assistance.
Links-
Cost base.
Working out your capital gain or loss.
MyTax instructions capital gains/losses.
All the best.
Thanks for the response.
I have looked thoroughly and cannot come to an answer. I'm unclear which element these costs fall into. Can you clarify?
Hi @atoquestions2,
Under 3rd element of the cost base it says - The costs of owning an asset include rates, land taxes, repairs and insurance premiums. You also include any non-deductible interest on loans used to finance:
You may also view a previous post in relation to deductions when selling an investment property. Alternately you can seek assistance from a tax agent in relation to what you can and can't claim.
All the best.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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