Can I claim renovation cost on personal income tax if I have CGT exemption?

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(Newbie)Newbie

31 Jan 2025

Due to six year rule, I don't need to pay any capital gain tax when selling my house. As far as I know, capital gain tax is calculated based on the difference between the selling price and the money I have spend on the house (purchase price + renovation +capital work etc). However, because there is no CGT to be paid due to main residence exemption, how can I claim the money spent on renovation to get the house ready for sale? Would it be on person income tax deduction?

Note: I lived in the house for 3 years and rented it out for a year before selling it.

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Taxduck

(Taxicorn)Taxicorn

31 Jan 2025

You don't have to use the 6-year rule. If you want to add the capital improvements to your cost base then calculate the CGT you can do that if you wish.

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Bruce4Tax

(Taxicorn)Taxicorn

31 Jan 2025

how can I claim the money spent on renovation to get the house ready for sale?

That would be capital works, and maybe some depn items.

So small claims for capital works, and maybe depn, if the property was rented after the work was done.

If done after rent ceased, then no deductions at all.

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Taxduck

(Taxicorn)Taxicorn

31 Jan 2025

You don't have to use the 6-year rule. If you want to add the capital improvements to your cost base then calculate the CGT you can do that if you wish.

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Can I claim renovation cost on personal income tax if I have CGT exemption?

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