EV 1052435913110currentnon-binding advice

CGT - cost base

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

1 Can you include the costs of owning your investment property in the third element of the cost base of under subsection 110-25(4) of the Income Tax Assessment Act 1997 (ITAA 1997)?

2

1 Yes. The property was not used to produce assessable income at any time. Therefore, you can include interest expense and costs of owning and maintaining the property in the third element of the cost base of the property under subsection 110-25(4) of the ITAA 1997. This ruling applies for the following period : Year ended 30 June 20XX The scheme commenced on: XX 20XX

3

You and your spouse purchased a land for investment purpose. You built a dwelling on this land (the property). On XX 20XX, you signed the contract of sale to sell the property. On 17 April 2024, the property was settled. During the ownership period, you incurred the interest on home loan expense, council rates, water, gas. You did not use the property to produce assessable income at any time.

4

Income Tax Assessment Act 1997 subsection 110-25(4)