Hi
I would like to clarify if I sell my investment property, can I add the renovation costs balance (i.e. Div 40 undepreciated value) as my cost base? For example, I paid $20,000 as renovation cost and depreciated for deduction $5,000 before I sold the property. Should I add $15,000 ($20,000 - $5,000) as my cost base when I calculate the CGT tax?
Regards,
All capital works costs are added to the cost base at the time incurred, then cost base is reduced by the total claimed as a tax deduction up to date of settlement.
CGT is complicated, so proper advice needed.
Just Curios how come its to the date of settlement?
When the CGT event occurs on contract date
Thanks a lot for confirming.
How about depreciation assets (i.e. Capital Allowance instead of capital works) if applied on the above question? Do I also need to added (Capital Allowance such as Carpet) to the cost base at the time incurred and reduce by the date of settlement?
Looking forward to your quick response! Thanks.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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