Records for calculating CGT

I'm trying to work out the total claims for depreciation, land tax etc for an IP that I've held for 17 years in order to work out the add-backs to the cost base so I can estimate how much CGT I would be liable for if the property was sold.

Does the ATO keep records of how much depreciation, land tax etc has been claimed over an extended period? Can my accountant access these records?

 

No, you are supposed to keep these records. If you have already claimed something you cannot claim it again when working out the cost base.

 

If you have a QS report it would indicate what you previously claimed and the value to adjust for the costbase

 

Thanks @Paul@PFI - I'm pretty sure I don't have the original QS report for this property as it was provided to my accountant (2 accountants ago) but I'll have a look at my tax returns and see if I can see the amount that has been previously claimed.

 

The depreciation schedule normally shows the acquisition cost - and so does the building allowance schedule.

You can also obtain lost returns from the ato but in this case I would just go by the info already in the tax return.

 

why not give the company who did the depreciation schedule a call and ask for a copy. most are generally very helpful

 

I always consider these are your records - I would imagine most accountants see that same issue. They will not have deleted your records (or should I say should not have deleted your records !!)

Just yesterday I had a client from 2009 ask for a copy of that tax return. No problem.

 

Thanks everyone for all the advice. I've worked with my accountant overnight using the depreciation schedule and got a much better estimate of potential CGT.

Purchase Price $ 153,500.00
Special Building Items $ (39,881.00)
Renovations & Repairs (est) $ 80,000.00
Agent Fees on sale (est) $ 12,000.00
Rates, Body Corporate (est) $ 6,752.00
Legal Fees (est) $ 1,500.00
Insurance (est) $ 500.00
Adjusted Cost Base $ 214,371.00
Sale Price $ 480,000.00
Capital Gain/Loss $ 265,629.00
Rent/PPOR split (19/21) $ 0.90
50% discount, 47cp$ $ 56,477.79

 

Rent/PPOR split (19/21) $ 0.90

What is this?

 

I suspect its no of months owned (21) and no of months rented (19)...Not quite right but a rough estimate. Should use actual no of days.

Could the 6 year absence rule have been chosen if it was a former home ?

This also raises a issue about s118-192. If I buy a property and I pay $400,000 for it today and move in the costbase is $400,0000 + duty + legals. Lets call it $425K.
If I move out in three months and rent it then s118-192 applies. It says that the costbase is the market value.

Question what is the costbase ? The historical cost to acquire is referred to as the first element of the cost base and second element costs include costs to acquire. But if s118-192 is used there are no costs to acquire at market value. Likewise if I incur costs to improve prior to the s118-192 date these are excluded from the costbase but hopefully the improvts give a higher market value.

I believe the market value is likely to be $400,000. Not $425K. This can harm those who seek a quick occupancy be fore renting a property for the first time.
s118-192 isnt optional.

I also have some concerns with its mischief in areas like mining communities where house prices have fallen.

Anyone (Rob G / Mike / Ross) want to share their views ? I have never determined a answer to this issue. I suspect its just another example of how s118-192 can be unfair.

 

@Paul@PFI @Terry_w It's actually years not months i.e. the property was an IP for the first 19 years of it's life and has been my place of residence for the last 2 years. My accountant also said we would work out on the basis of days rented vs. days lived in once contract sale date is known but this was a rough guide to knowing how much CGT I would be up for assuming sale price etc etc.

My understanding of the 6 year rule is that it wouldn't apply to this property as it was never my PPOR.