Hi All,
Property was valued at $435,000 when it became a 'rental. We had lived in the property for more than 12 months prior to renting it out.
We moved into another PPoR.
I sold the property for $428,000 (contract), which is obviously less than its previous val when we rented it.
I assume I fill out the CGT portion of the tax return as follows
COST BASE: $435,000 (date first used for income producing purposes)
REDUCED COST BASE: = $435,000 – (conveyancing) – (agents comms) – (exit fees for bank)My question is – have I understood this correctly.
I have adjusted my depreciation amounts based on part year apportionment (due to selling 6 mths into FY).
Can I also claim the 'break fees' for the bank loan, and if so, where would I put this in my tax return (i.e. would I include this in the capital loss worksheet – or do I put this under bank interest/charges in the deductions area).
Appreciate any feedback, (interestingly I called ATO with this, and they were not answering calls at the moment!)
Regards
The exit fees from the bank are a cost of borrowing, so would be included in the rental expenses, as borrowing costs.
I assume it was your PPOR from day one? If so, the cost base is $435,000 (per the valuation)
The sales price is $428,000 less agents commission, conveyancer etc.Hi Dan42,
So my cost base would be an adjusted cost base taking into account the conveyancing, comms etc which would give me the final capital loss amount?
And then I would claim the exit fees as a borrowing cost?
Cheers
For the little it will cost you (and the lot it will save you if you get it wrong), I'd recommend that you go to an accountant for your tax return this year as they are more across the calcuation of cgt and losses (which must be carried forward as they must be offset against capital gains and cannot go against other income).
It may just be the busiest time of the year for the ATO so you will need to persist.
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