Valuation for CGT?

If its been a PPOR throughout the gain is EXEMPT. No calculation needed. A CGT loss is also exempt and cannot be claimed. However....

The business use requires tax advice that confirms if the use involves a CGT adjustment. (It doesnt always) If so, then a calculation that considers a portion based on office area v's total area etc may be required for the period affected.

A home office requires more than a office desk etc for a cap gains tax issue.

 

Also worth considering whether the small business CGT concessions apply to the home office to reduce or eliminate any potential CGT.

 

so if its PPOR throughout it gets pass the CGT cause exemption.
If PPOR has been converted into IP then the cost base calculation at the date of transfer is just the valuation of the property OR it also includes the interest, repairs, etc....(while it was PPOR)..

 

it depends what you mean by 'home office'.

 

e.g. when one works from home i think ATO allows certain cents per hour to be claimed in tax.

 

That shouldn't affect CGT. But you probably shouldn't be claiming a % of the interest and other costs in this case.

 

Assume there is no home office scenario at all....if PPOR has been converted into IP then the cost base calculation at the date of transfer is just the valuation of the property OR it also includes the interest, repairs, etc....(while it was PPOR)..

 

If it starts off as a main residence and then it is rented the cost base would be the valuation at the date of renting. The other costs incurred previously wouldn't count.

If it starts off as a rental then is moved into as a main residence other costs such as interest etc while living there could also be used to reduce the CGT in the end as CGT in this case is worked out on a time rented v time main residence basis.

 

Depends. If after you move from the former home and rent then the 6 yr rule may mean the property is exempt. No gain, no loss.

In the generalised question posed there is no choice. (I highlighted bold to emphasise). If a former home is rented then the cost base IS the market value at date it first earns income. Costs while a PPOR are excluded. However if it was a rental, then a home and then a rental again the prorate calc of the capital gain applies. The cost base may include some non-deductible ownership costs like interest etc while it was home.