• Assets acquired after 13 May 1997
    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    If you acquired a CGT asset after 13 May 1997, the cost base of the asset does not include:

    • any expenditure on the asset that has been (or can be) allowed as an income tax deduction; this applies to all elements of the cost base, or
    • heritage conservation expenditure and landcare and water facilities expenditure incurred after 12 November 1998 that give rise to a tax offset.

    Note

    Special rules for land

    Special rules apply if you acquired land on or before 13 May 1997 but you incurred expenditure between this date and 1 July 1999 on constructing a building that is treated as a separate asset from the land for CGT purposes. If you think this may be relevant to you, contact the Australian Taxation Office (ATO) for more information.

    Example

    Special building write-off deduction

    Zoran acquired a rental property on 1 July 1997 for $200,000. Before disposing of the property on 30 June 2002, he had claimed $10,000 in special building write-off deductions.

    At the time of disposal, the cost base of the property was $210,250. Zoran must reduce the cost base of the property by $10,000 to $200,250.

    Last modified: 06 Oct 2009QC 27417