Can you offset a capital gain off one IP into a renovation of another IP>

Discussion in 'Accounting & Tax' started by Inov8ive, 3rd Nov, 2018.

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  1. Inov8ive

    Inov8ive Well-Known Member

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    So i have recently listed two IP's for sale, one sold with a total capital gain of 150k. The other property is looking like it isnt gonna sell. Problem is I have spent 50k renovating the property that isnt selling. Can i write that off as a capital loss or is it only valid when that particular property sells and the loss is realised?
    Thanks
     
    Inov8ive, 3rd Nov, 2018
    #1
  2. jazzsidana

    jazzsidana Well-Known Member

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    27th Jan, 2018
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    Melbourne
    It forms part of the cost base and profit/loss will be realised when sold...

    Speak to your accountant to be on safer side!.

    Cheers,
     
    jazzsidana, 3rd Nov, 2018
    #2
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    no.

    I think i included this in my tax myths threads:

    Tax Tip 180: 10 Tax Myths Tax Tip 180: 10 Tax Myths
     
    Terry_w, 3rd Nov, 2018
    #3