Cost Base for a CGT Event

Discussion in 'Accounting & Tax' started by albanga, 30th Jul, 2015.

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  1. albanga

    albanga Well-Known Member

    19th Jun, 2015
    Hi All,
    My mother in law just sold her family home that she purchased and lived in up until 5 years ago when she moved in with her husband. The house has now been sold and her husbands home will be claimed as their PPOR which means CGT will be payable on this home for the 5 years.

    I just had a few questions regarding the CGT that will be payable on this.
    • No valuation was done at the time she moved out. Who and how will they assess the value at the time she moved out?
    • What can be added to the cost base? For example if it was worth 550k 5 years ago and it was sold for 700k then what can be added to reduce the 150k gain. When sold she had agents fees, advertising, staging, conveyancor, landscaping, renovations. Can all this be added?
      • Then in the 5 years prior to sale she rented the home out. In that time she paid interest on the loan, new carpets, new blinds, tiling, appliances, gas hot water system, light fittings, rates, insurance, water, maintenance and several other small things.
    Can all this be added? If not what would need to be removed?
    Also is there anything I have missed that could be added?

    She mentioned her accountant had asked for some things but a lot of stuff I mentioned she said he did not ask for?

    Thanks in advance
  2. Terry_w

    Terry_w Structuring Lawyer and Finance Broker - all states Business Member

    18th Jun, 2015
    Does it need to be valued? If repaying on s118-145 for the 6 year exemption then it won't.
    If the valuation does need to be worked out a valuer will be able to do this.

    Anything not otherwise claimed including all interest and other costs such as rates, insurance, lawn mower fuel, cleaning products etc while living there. s 110-40 ITAA97