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Cost base

Discussion in 'Accounting & Tax' started by Gman22, 23rd Sep, 2015.

  1. Gman22

    Gman22 Member

    Joined:
    23rd Sep, 2015
    Posts:
    16
    Location:
    Sydney
    Hey all,
    Firstly i just wanted to say what a great site this is.
    Also I was wondering if anyone on here could help me find more information about selling an investment property and items i could add to the cost base and item i can claim against my taxable income.
    I have gone on the ato site but info seems to be generic and not as detailed as i'd like

    Thanks
    Gman
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,387
    Location:
    Sydney
    There are multiple elements to the cost base. https://www.ato.gov.au/General/Capi...-cost-base-/?page=2#Elements_of_the_cost_base
    Examples :

    Property + Land Purchase Price
    Land - Purchase Price
    Building Construction

    Acquisition Costs - Do not include any costs for which a tax deduction has (or will) be claimed
    Legal fees to acquire
    Buyers Agent
    Broker (not loan broker)
    Auction fee charged to buyer
    Valuer / Surveyor
    Transfer of Title - legals
    Stamp Duty less FHOG
    Search fees on acquisition
    Bank title fees
    Mortgage discharge fees charged to buyer incl SOME break costs

    Costs of Ownership - For which a tax deduction has never been claimed
    Interest
    Rates
    Land Tax
    Repairs & Maintenance
    Initial repairs & later capital improvements :
    Insurance (Building only)
    Fencing
    Landscaping and horticulture
    Rezoning
    DA Fees
    Survey boundary
    Council fees
    Subdiv costs prior to subdiv sale

    Costs to Preserve Ownership
    Legals re Land & Enviro
    Council matters
     
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