Property Buying costs in Melbourne for CGT

Hi,
Need suggestions please. We purchased property in Melbourne around $330k (FHO) in nov 2008 and sold it couple of months back. It was rented the last few years as investment property. In order to calculate CGT, i need to understand costs that i incurred when we bought it which i unfortunately haven't kept record of:
(1) what are the costs typically i would incurred at that time - stamp duty, conveyancing costs and what other costs?
(2) is there a way to get the costs that we incurred at that time from somewhere
(3) if i can't find invoices or receipts, can i claim approximate/standard amounts and what would that be?

Thanks for the assistance.

 

Was it rented the full time or did you live in it?

 

if you lived in it first your cost base might be the value at the date it was first rented. If so none of the costs listed in 1 matter

 

Thanks Calder&Scale and Terry. Yes we lived in there from Mar 2009-Nov 2012 and rented out from Nov 2012. A real estate agency (Harcourts) valued the property $430-$470K around that time. The council valulation from where we pay the council costs valued our property at $401K at that time. We sold the property in Apr 2020. How would the CGT work? Thanks.

 

Because the property changed from main residence to rental, it's as Terry said. The costbase is the market value at Nov 2012.

Obviously a higher valuation would be better so I'd probably use the mid point of the real estate's valuation. (to be honest I'm not sure if it has to be a formal valuation or if an RE's driveby assessment is sufficient)

The costbase will also include sale costs. Then as the property was held for > 1 year, the gain is halved and you pay your marginal tax rate on that.

 

You've said you purchased in Nov 2008 but moved in in March 2009. When was the property settlement. If it was before March 2009 why hadn't you moved in earlier

 

Don't forget to consider whether to use the 6 year rule or not to keep it exempt from CGT.

 

Hi Jrc, the property was purchased on Nov 2008 but settled in Mar 2009 and we started living in after settlement.

Hi Calder&Scale and Terry, I just noticed I cannot attach valuation in this portal.. but valuation is in agency leaflet with logo and says '.... After carefully analysing previous sales & current properties for sale and rent, the market indicates that your family residence would fall into a price range of $430,000-$470,000. Please note that is an opinion of market value and not a sworn valuation....'

Also Terry, how does the 6 year rule work and what do you suggest would work out best in our circumstances? Thanks for your advice on this.

 

If you don't have another primary residence you can extend the main residence exemption after vacating for a maximum of 6 years (if rented out).

The gain is multiplied by main residence days (6 years) / ownership days (nov 2012 onwards)

 

We moved to our another home in nov 2012 and have lived there since then. Does that mean we cannot claim 6 years cgt? Thanks

 

No it doesn't. But it will mean the other home could be subject to CGT.
You probably should see an accountant and work out which method would save you the most tax.

 

Thanks Terry and Calder&Scale for your advice. It has been very useful for me. Really appreciate your assistance.

 

Another quick question. My accountant advised us that the the only thing i can take into account is the stamp duty we paid from SRO. For the property in melbourne that we purchased as FHO in Nov 2008 and settled in Mar 2009 at $330,200, how much would have been the stamp duty we paid it then? i did find the stamp duty calculator but couldn't specify the year and i think the calculation has changed over the years.

I have got got different amounts from different sites. Not sure which one is correct. Would i be able to get the information from somewhere?

From Stamp Duty Victoria (VIC) The amount i got from the calculator $991.70

From different website, Calculators | State Revenue Office Victoria, Amount came $12,880

 

The costbase is not the costs incurred on purchase, please refer back to post #3 & 5.

More reading here:
Using your home to produce income
Start reading from "Value of home when first used to produce income" onwards.

 

as @Calder&Scale says stamp duty on purchase is irrelevant where the cost base is reset to market value at first used to produce income.

 

Thanks Calder &scale and Mike A