When you own an investment property, it is important to keep records of all associated costs and expenses for the whole duration that you own the property. Good record keeping will not only help with tax time but also important when you want to sell your investment property. Having records of the exact cost base of your property is vital to minimise any future capital gains tax liabilities. The cost base of a property will include things like the purchase price, legal fees, stamp duty and various other capital costs. Costs that have already been claimed as a tax deduction will be excluded from the property’s costs base.
For more information, please visit the ATO website here.
