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saint65(Initiate)Initiate
23 Aug 2025

I am looking at selling my investment propery which I purchased new in 1993.


There are 3 caterories of items that are not fully deprciated.


(1) new fixtures and fittings - new carpet and so forth

(2) new capital expenditure - bathroom renovations and so forth

(3) The remainder of the original 40 year capital work depreciation.


I would like to know which of these catergories of residual depreciation I can add to my capial gains cost base.


Thanks for your assistance.

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Taxduck(Taxicorn)Taxicorn
23 Aug 2025

When adding costs to the cost base any depreciation that has been claimed (or could be claimed) as a deduction off rental income cannot be included in the cost base.

So depreciation claimed for the original construction cost is subtracted from the cost base.

Any improvements made over the years such as new bathroom and fixtures and fittings, are added to the cost base and the depreciation claimed is then subtracted from the cost base.

See below and the example (Karl and Louisa) for guidance.

CGT when selling your rental property | Australian Taxation Office

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Residual Depreciation amount | ATO Community