All Topics / Legal & Accounting / Working out BASE COST for CGT after Renovations

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  • Profile photo of balniksbalniks
    Participant
    @balniks
    Join Date: 2006
    Post Count: 31
    November 3, 2015 - 7:56 pm

    Hi guys,

    Just a quick one on how to work out the base cost of a PPOR turned into IP. I believe i may have mucked up my tax return this year, as i’ve since read something i may have missed out on.

    Purchase price plus fees etc was approx $160k, i sold for around $207 after deducting selling fees etc too. But i’ve since read that renovations can be added to lower the base cost? As my tax return stands now i owe about $5k. I was happy to pay that, but if i can get it down to nothing, then that would be good!

    So i renovated when the place was my PPOR, then i rented it out and sold after. Can i add the reno’s onto the base cost? As per my Depreciation Schedule “Qualifying Capital Expenditure incurred on eligible capital works” residual value – was nearly $40k.

    So if i understand, could this have been added to the cost base i worked out of approx $160,000? Any advice is appreciated.

    Thanks!

    Profile photo of crjcrj
    Participant
    @crj
    Join Date: 2004
    Post Count: 618
    November 3, 2015 - 9:53 pm

    You need to get a value when the ex Ppor became income producing. That’s your new cost base. So that becomes your cost plus acquisition costs – legals, stamp duty plus selling costs.

    • This reply was modified 9 years ago by Profile photo of crj crj.
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