Hi Team,
I’d like to clarify a few details about my situation. I purchased our primary place of residence (PPR) property in June 2022. In June 2024, I converted it to a rental property, and I plan to sell it in January 2026. I’m hoping to better understand how to calculate the CGT in this scenario.
Details:
1. Property Purchase (June 2022):
- Purchase Price: $500,000
- Additional costs (stamp duty, legal fees): $30,000
2. Conversion to Investment (June 2024):
- Market valuation by an independent valuer: $700,000
- The property has been rented out since conversion with standard maintenance, no major improvements.
- Claimed capital work depreciation on building/structure: $10,000
3. Sale of Property (January 2026):
- Sale Price: $900,000
- Selling costs (including legal fees): $20,000
I’m interested in understanding the calculation for the CGT outcome, specifically regarding the $30,000 purchase-related costs.
Additionally, I have a question about depreciation: if I purchased an item like a refrigerator for the investment property (estimated life of 10 years, costing around $1,000), and I sell the property after two years, should I stop claiming depreciation, or should the remaining amount be included in my final tax return?
Your assistance in clarifying these matters would be greatly appreciated.
Thank you!
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