Reduced cost base



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

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The amount of the capital works deductions you claimed or were entitled to claim for expenditure you incurred in respect of an asset is excluded from the reduced cost base.

Example - Capital works deduction

Zoran acquired a rental property on 1 July 1997 for $200,000. Before disposing of the property on 30 June 2004, he had claimed $10,000 in capital works 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.

End of example
Last modified: 04 Mar 2016QC 27527