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Selling a investment property after renovations

Newbie

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I have just sold an investment property, prior to selling it I built a $200,000 granny flat and then renovated the house  spending $30,000.

I would like to know if one or both of these expenditures effect my liability when it comes to paying my capital gains tax.

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Most helpful response

ATO Certified Response

ATO Community Support

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Hi @burleigh66

 

It depends on whether you are a personal property investor, a business that renovates properties, or engaged in the profit-making activity or property renovations. Each of these scenarios have different tax obligations when it comes to selling a renovated property. Have a read through our page on renovating properties and see which category you fall into. From there, each section should give you some more information on your capital gains tax (CGT) obligations. These sections then have some helpful links to other pages to read further into. 

 

You can read more about property development and renovation on our website. 

 

Once you've looked through that, if you have any further questions let us know. Please also let us know which category you fall into so we can best help you.

 

Hope this helps.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @burleigh66

 

It depends on whether you are a personal property investor, a business that renovates properties, or engaged in the profit-making activity or property renovations. Each of these scenarios have different tax obligations when it comes to selling a renovated property. Have a read through our page on renovating properties and see which category you fall into. From there, each section should give you some more information on your capital gains tax (CGT) obligations. These sections then have some helpful links to other pages to read further into. 

 

You can read more about property development and renovation on our website. 

 

Once you've looked through that, if you have any further questions let us know. Please also let us know which category you fall into so we can best help you.

 

Hope this helps.