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Re: Capital gains re styling house

Initiate

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Hi

 

I am planning to sell my investment property. If i was to style the house with furniture prior to selling, does these styling expenses play a part of my capital gains calculation?

 

For example if i sell my house for $340k and it took me $5k to style the house for it to be ready to be put on the market. Can this reduce my capital proceeds from $340k to $335k?

 

Or does the $5k be the fourth element of the cost base re capital costs to increase/preserve the value of my asset. Since i am technically increasing the value to sell it higher by styling it with nicer furniture

 

Thanks

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Most helpful response

ATO Community Support

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Hi @fionalong33,

 

There is information available under Elements of the cost base and reduced cost base, which lists the different expenses that can be claimed against an asset to help reduce the Capital Gain event.

 

Unfortunately, this list does not include your scenario of purchasing furniture to help in obtaining a higher sale value.

 

You do have the option of seek advice/confirmation from our Early engagement area under Small Business and individuals (linked bellow) for a possible ruling on this matter.

 

Links

Elements of the cost base and reduced cost base

Early Engagement for advice

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hi @fionalong33,

 

There is information available under Elements of the cost base and reduced cost base, which lists the different expenses that can be claimed against an asset to help reduce the Capital Gain event.

 

Unfortunately, this list does not include your scenario of purchasing furniture to help in obtaining a higher sale value.

 

You do have the option of seek advice/confirmation from our Early engagement area under Small Business and individuals (linked bellow) for a possible ruling on this matter.

 

Links

Elements of the cost base and reduced cost base

Early Engagement for advice