Hi, we have another question. We are living in our PPOR, we bought another house for 250,000 11 months ago, we have spent 100,000 renovating, we have not lived in it nor have we rented it out. We have been paying water and electricity for the full period while working on it. It is valued between 450-480,000 after the reno. If we were to sell it tomorrow for 460,000 what fees and tax’s would we be up for and what can we deduct? I can’t make sense of the ATO publications on CGT. I am so confused. Do we pay tax on the 210,000 (sell price – bought price) or on 110,000 (sell price – bought price- reno price) and what tax’s are they.
I was told that if we were to rent it out when we finished the reno’s. That if we get a valuation done before we rented it, out then rent it out for a year. Then decided to sell we would only pay tax on the difference from when it was valued at and what we sold it for?
so confused. PPJ

• This reply was modified 9 years ago by  pinkpicklejuice.