cost base qu

[john doe]

Hi everyone,

Is this correct.....lets say I spend $30k on renovations for my bathroom and kitchen on my PPOR. When it comes time to sell my home, can I then add this $30k to the cost base for cgt calculations?

Also, if I sell to my family trust, I take it this has to be done at a reasonable market rate to keep the ATO happy. Is this correct?

Thanks

John

 

[DaleGG]

Hi John!

Originally posted by john doe
Is this correct.....lets say I spend $30k on renovations for my bathroom and kitchen on my PPOR. When it comes time to sell my home, can I then add this $30k to the cost base for cgt calculations?

Also, if I sell to my family trust, I take it this has to be done at a reasonable market rate to keep the ATO happy. Is this correct?

Yes, the costs involved in any improvement to the house can be added to the cost base to reduce the CGT when you sell the house.

Yes, any sales between "related parties" is treated at happening at market value regardless of the sale value shown on the contract. A while ago on the old forum, Rob Forward suggested that he could sell his house at $300k to his trust and the bank would lend him the finance based on the contract price. In addition, since the market value was only $200k, the tax office would be forced to use the lower price.

Have fun

Dale

 

[Terry D]

Hi
Dale , correct me if I,m wrong but if John sold his PPOR there wouldnt be any CGT would there

Terry

 

[john doe]

Hi,

Oh yeah, I should probably clear up a point. I actually rented out my property before I moved into it. So I need to pay CGT on the time the property was rented out for.

Cheers

John