Hi, we owned a house for 20 years. Purchased for $410000. We lived in it for 12 years and then rented it out for 8 years, it was worth around $750000 when rented out. The tenants moved out recently and we had a real estate look at the house, they estimated we could sell the home as is for $1300000.
Since then, my husband moved back into the property around two months ago and has been renovating. Total renovation cost around $70000, it would have been a lot more if we did not do a lot ourselves. We have now been told to expect a sale of around $1450000 to $1500000.
I am after advice of what to do next. The renovations started last tax year and we plan to list the house for sale next month.
Do we claim all of the renovation expenses against the base cost? Can my husband claim the house as his PPOR (He has lived there) and pay CGT on the value increase for the period it was rented only ($1300000-$750000)?
Happy for any advice you can offer. My tax agent has not been helpful. I think I need a new one.
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