All Topics / The Treasure Chest / Capital improvements V renovations ????

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  • Profile photo of HarrishHarrish
    Member
    @harrish
    Join Date: 2003
    Post Count: 0
    May 13, 2003 - 1:33 am

    Hi there

    [?] I am confused !

    I am planning on buying a property for around $ 200 000.
    Assuming I spend $ 20 000 on renovations such as

    upgrading kitchen
    upgrading bathroom
    general painting
    polishing floorboards etc.

    and sell for $ 275 000

    what expenses can I offset against the CGT by doing the above renovations ?

    Any help would be appreciated ?

    Cheers

    Profile photo of ADAD
    Participant
    @ad
    Join Date: 2002
    Post Count: 636
    May 13, 2003 - 4:02 am

    Anything you spend on the property is offset against the resale value.
    eg.

    Cost – $200K
    Reno – $20K
    Stamps, etc. – $5K
    Commission (for resale) – $8000

    Cost of house to offset – $233K.

    Numbers are very rough but just some ideas for you. Please check with your accountant though as to your situation but shouldn’t be much different.

    Enjoy
    AD [:0)]
    (Andrew)

    “”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
    Albert Einstein

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