I have a question regarding CGT and items that can be added to form part of the cost base.

Property in question was built brand new and has only be used as an IP

These are the items I believe can be added to the cost base:
- conveyancer / lawyer costs to sell property
- stamp duty paid on purchase of property
- real estate agent advertising costs to sell the property
- real estate agent commission costs on selling of property

Can the following items be added to form part of the cost base given they were never claimed as a deduction on income tax?
- costs to install blinds
- cost for improvements added to the house (eg: cost of a fancy light fitting, letter box, clothes line, dishwasher)
- costs for landscaping the property (this is a one off cost incurred on completion of brand new house)

Is there anything else that can be added?

Thanks in advance
 
Thanks Terry

I have read through the Act. Would it be fair to say that costs for improvements to the property (blinds, light fittings, letter box, etc) would fall under the fourth element which is:

capital expenditure you incurred:

(a) the purpose or the expected effect of which is to increase or preserve the asset's value; or
(b) that relates to installing or moving the asset.


Yes possible ss (a)/
 
Thanks Terry

I have read through the Act. Would it be fair to say that costs for improvements to the property (blinds, light fittings, letter box, etc) would fall under the fourth element which is:

capital expenditure you incurred:

(a) the purpose or the expected effect of which is to increase or preserve the asset's value; or
(b) that relates to installing or moving the asset.

No. However a Div 40 asset may result in a cost base adjustment.

The costs you describe are capital expenditure, not improvements as such. Likely to be pooled and depreciable and affect the cost base when sold.

My spreadsheet provides a good CGT summary of cost base elements. 4th element costs are unusual and may include defending title, zoning changes etc. Moving an asset is included. That's unusual. The lower the elements the rarer they seem to get.
 

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