We are just about to complete the sale of a property which we've held for 21 years. In 1997 they changed the rules for CGT. Any items which were depreciable were no longer a part of the cost base when selling, increasing the CGT payable. The rules changed on 13 May 1997. We exchanged contracts on 12 May 1997.
Just remember that if you did capital works for expenditure after 30 June 1999 you have to reduce your cost base for those amounts claimed. 110-45(1A)
Thanks. The only capital works expenditure has been to get the property ready for sale, so that haven't been claimed yet. We spent about $8k, which increased the value by about $25k.
Good you know about it. Many dont. They think all owners must make the adjustment. Tip - Review the QS report for obsolete items on the final date of ownership. The write off can give a deductions without a CGT impact. A freebie if there are any
Typically zoning costs, moving etc. Its fairly limited and doesnt impact much. Of greater concern is if the land was pre-1997 and a new build occurs after the announced date. A "separate CGT asset" triggered by the separate asset threshold and then not subject to the former rules. ATO barely mention it here https://www.ato.gov.au/Forms/Guide-to-CGT-2001-02/?page=31
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