Join Australia's most dynamic and respected property investment community

CGT on IP sale

Discussion in 'Accounting & Tax' started by neil100, 24th Aug, 2015.

  1. neil100

    neil100 New Member

    Joined:
    1st Jul, 2015
    Posts:
    2
    Location:
    Sydney
    Hi

    Do legal fees, buyers agent fees that were incurred buying the property get taken into account when selling?

    Any other items that can be used to minimize the CGT paid?

    Thanks
     
  2. jrc

    jrc Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    76
    Location:
    Regional NSW
    Yes. If there was any period the property wasn't income producing and you weren't able to claim deductions for rates, insurance , interest etc that can form part of your cost base. Remember the building write off gets added back on.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    This would depend if your lived in the property initially before it became a IP. If not there are many items that affect the cost base (up and down)

    My tax checklist includes a CGT summary page that assists to explain and identify common cost base issues. Important if you have claimed depreciation and / or Cap allowances to adjust for this to reduce the cost base if the property was acquired after the relevant date.
     

    Attached Files:

  4. neil100

    neil100 New Member

    Joined:
    1st Jul, 2015
    Posts:
    2
    Location:
    Sydney
    Thanks for the responses. No, I didn't live in it before it became an IP. it was purchased off the plan and went straight to being an IP.

    THANKS