I recently sold my investment unit after 13yrs ownership. During that time, I claimed close to $65k as Div43 Capital Works deductions. Is it true that I need to deduct this amount from my Cost Base when calculating the CGT? i.e. effectively I am "giving back" all of these deductions previously taken during the 13yrs of ownership. Hence this substantially increases the Capital Gain I have realised.
Yes. The capital works claimed as a tax deduction cannot be included in the cost base. This is because they have already been claimed as a tax deductible expense.
Link explains
Cost base adjustments for capital works | Australian Taxation Office (ato.gov.au)
Claiming construction costs is not as effective as it is often made out to be.
Yes. The capital works claimed as a tax deduction cannot be included in the cost base. This is because they have already been claimed as a tax deductible expense.
Link explains
Cost base adjustments for capital works | Australian Taxation Office (ato.gov.au)
Claiming construction costs is not as effective as it is often made out to be.
21 May 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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