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Re: Cost Base for CGT

Enthusiast

Views 76

Replies 3

HI ATO Community,

 

I am trying to work out the cost base for my property, property was rented out in 2012 after I have lived in it for 8 years.

I have got some clarification from @BlakeATO that the market value of the property in 2012 should be used as the cost base.

However, do I have a choice to use the purchase price of the property as the cost base (purchased back in 2000)?

 

Also, under what circumstances do we use the actual purchase price as the cost base and the same for market value as the cost base?

 

Thank you in advance for any links and tips on this.

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 2

The cost base is the price when it was first rented out but more to the point using the purchase price from 12 years prior will in most instances result in a bigger capital gain & hence more tax for you to pay.

 

3 REPLIES 3

Most helpful response

Devotee

Replies 2

The cost base is the price when it was first rented out but more to the point using the purchase price from 12 years prior will in most instances result in a bigger capital gain & hence more tax for you to pay.

 

Enthusiast

Replies 1

@SM2304 thank you for your reply on this.

 

So umm I can choose to use the purchase price as the cost base back in 2000 if it results in a lower capital gain? (through proportioning to see how many days are liable for CGT.

ATO Community Support

Replies 0

Hi @TaxAddict,

 

I have provided a response to this post on your other thread, which advises how to determine your cost base. You can use this link to follow up.

 

All the best.