Selling an investment property can trigger a capital gains tax calculation. The accuracy of that calculation depends heavily on the records available.
Key records to keep include:
- Purchase contract
- Settlement statement
- Stamp duty records
- Legal fees on purchase
- Buyer's agent fees
- Selling agent fees
- Legal fees on sale
- Advertising and sale costs
- Loan and finance documents where relevant
- Building and renovation invoices
- Extension and improvement costs
- Depreciation schedules
- Capital works deductions claimed
- Holding cost records where relevant
- Dates the property was rented
- Dates the property was private use, if applicable
- Main residence records, if applicable
- Ownership percentage
- Entity ownership details
Many investors focus only on the sale price and purchase price. The correct position can be more detailed, especially if the property has been renovated, partly used privately, inherited, owned through an entity, or held for many years.
Koste.ai can help investors understand what information may be needed before selling and whether a CGT cost base review is worthwhile.