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keenontax(I'm new)I'm new
14 Jan 2026

Please advise me with the cost base calculation and rates on the settlement contract.


The house was bought in 2007 and the sale date was 20 Sep 2024. The tenant had moved out on 13 Aug so the house was not available for rent until the sale date. There were:

  • Water rates incurred from 01 Jul to 30 Sep 2024.
  • Body corporate fees from 01 Aug to 31 Oct 2024.

Settlement adjustment was completed on 25 Nov 2024. There were these rates:

  • Water rates from 01 Oct to 31 Dec 2024.
  • Body corporate fees from 01 Oct to 31 Dec 2024.
  • General rates from 01 Oct to 31 Dec 2024.

I have a few questions:

  1. Is it correct to add only the water rates and body corporate fees from 14 Aug to 20 Sep into cost base? Or should I add the whole period?
  2. Is it correct to ignore the water rates, body corporate fees, and general rates on settlement contract since they occur after the sale date 20 Sep? Or should I add them to cost base also?

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4 replies
203 views
4 replies

All replies

Colin_Oscopy(Champion)Champion
15 Jan 2026

If you actually paid the rates and body corp fees before the tenant moved out on 13 August, I would include all those costs in the rental schedule, and leave the cost base well alone.

Whichever way you decide to slice and dice these costs, the impact on the overall tax outcome is likely to be just nickels and dimes. Maybe the cost of a cup of coffee ?

Keep it simple and get it done.

Liked by Colin_Oscopy
RachelATO(Community Moderator)Community Moderator
15 Jan 2026

Hi @keenontax,


For question 1

You can only add costs to the cost base from when the property stopped being available for rent until the sale date.


Include water rates and body corporate fees from 14 August to 20 September 2024. Don't include the full billing period, just the portion that falls within this timeframe.


For question 2

You can't add the rates from the settlement adjustment to your cost base. The cost base is worked out at the date the contract was signed, which was 20 September 2024. Any costs that relate to the period after this date aren't part of your cost base.


Your cost base includes things like the original purchase price, buying costs (such as stamp duty and legal fees), and certain holding costs during the time it wasn't income-producing. It also includes your selling costs (like agent's commission and solicitor's fees).


You'll need to work out your capital gain by taking the sale proceeds and subtracting your total cost base. Since you owned the property for more than 12 months, you may be eligible to apply the 50% CGT discount.


Our Capital gain or capital loss worksheet 2025 will help you out. It has detailed examples and shows you how to calculate everything step by step.

Liked by keenontax

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