How do I treat Div43 Capital Works Deductions when I sell an investment property?

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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) (https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/calculating-your-cgt/cost-base-of-asset/cost-base-adjustments-for-capital-works) Claiming construction costs is not as effective as it is often made out to be.

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