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christine1320(Enthusiast)Enthusiast
24 May 2022

Hi


I have an investment property that has been rented out from the first beginning. I am going to move in 2 years later and before moving in a renovation is needed ($10k)


This property was purchased for $500k, if I sell the property 5 years later (2 years rented, 3 years owner-occupied) for $620k, and the commission is $10k for the agent


How much CGT I will have to pay? Should I include the renovation and commission in the cost base?

Is this CGT 620-10-10-500 = 100k * (2/5 years) *50% = 20k?


Thank you very much

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Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
25 May 2022

Should I include the renovation and commission in the cost base?


Yes.


Is this CGT 620-10-10-500 = 100k * (2/5 years) *50% = 20k?


To some extent, but cost base also includes:


  1. stamp duty on purchase - unless located in ACT
  2. legals on purchase
  3. legals on sale
  4. holding costs while main residence (cannot increase a loss)
  5. reduced by capital works and depn claimed while rented.
  6. any new capital items added to the property.


All replies

Most helpful reply

Bruce4Tax(Taxicorn)Taxicorn
25 May 2022

Should I include the renovation and commission in the cost base?


Yes.


Is this CGT 620-10-10-500 = 100k * (2/5 years) *50% = 20k?


To some extent, but cost base also includes:


  1. stamp duty on purchase - unless located in ACT
  2. legals on purchase
  3. legals on sale
  4. holding costs while main residence (cannot increase a loss)
  5. reduced by capital works and depn claimed while rented.
  6. any new capital items added to the property.


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