Why Property CGT Records Matter More Before the Rules Change

Property CGT records help prove the costs used to work out your capital gain. If cost base indexation replaces the 50% CGT discount from 1 July 2027, investors may need clearer proof of their costs. The asset’s cost base generally includes the purchase price, incidental costs, some ownership costs, value-preserving costs, improvement costs and costs linked to defending ownership rights. This may include purchase costs, improvement costs, selling costs and market value at key dates. Strong investment property cost base records can help you: support your CGT calculation prove eligible purchase and selling costs separate repairs from capital improvements document renovations and upgrades give clearer details to your accountant or tax agent reduce stress when selling the property Good records do not remove capital gains tax. They help make the calculation clearer and easier to support. They can also help confirm that amounts already claimed as capital works deductions or another tax deduction are not included again in the cost base.

What Documents Should You Keep for Property Capital Gains Tax (CGT)?

Property investors should keep records that show what they paid, improved, borrowed, claimed and received when they sell. These records can support the cost base calculation. They can also help your accountant work out the correct capital gain or loss. Record type Why it matters for CGT Purchase contract Confirms the purchase price, acquisition date and property details Sale contract Confirms the sale price, disposal date and settlement terms Settlement statements Shows purchase and sale adjustments, stamp duty, legal fees and other settlement costs Renovation invoices Helps prove capital improvements, upgrades and building work Loan records Supports borrowing cost details, loan fees and discharge costs Agent invoices Shows commission, advertising, auction and selling expenses Valuation evidence Helps support market value at key dates Tax depreciation schedule Records eligible capital works and depreciable assets Keeping these records together makes your property CGT records easier to review before the rules change.

Keep Your Contracts and Settlement Statements Together

Your purchase and sale documents form the base of your investment property cost base records. Keep the purchase contract, sale contract and both settlement statements in one place. These records help confirm when you bought and sold the property. They also show what you paid, what you received and which costs may affect your CGT calculation. Settlement statements can show costs and adjustments such as: stamp duty legal fees conveyancing fees settlement adjustments title transfer costs discharge costs council, water or strata adjustments These records are often the first documents your accountant will ask for when calculating capital gains tax on an investment property. You can maintain an asset register instead of keeping every original record used to calculate a capital gain or loss. However, you must keep the original documents for at least five years after the asset register entry is certified.

Save Invoices for Renovations, Repairs and Capital Improvements

Renovation records help prove what work was done, when it was done and how much it cost. Keep invoices and receipts from builders, plumbers, electricians, tilers, painters, landscapers and other trades. Also, keep receipts for materials, fixtures, fittings and appliances. These records matter because renovation costs can have different tax outcomes. Some costs may relate to repairs and maintenance. Others may relate to a capital improvement, capital works or depreciable assets. A clear paper trail can help your accountant separate: repairs and maintenance capital improvements major renovations capital works plant and equipment depreciable assets Do not rely on bank statements alone. They may show that money was paid, but they often do not explain the work, asset or property area involved. Cost type Common examples Why records matter Repairs and maintenance Fixing a broken tap, patching damage, repainting worn areas May support immediate deductions if the work restores the property Capital improvements New bathroom, kitchen upgrade, extension, structural work May affect the cost base or capital works deductions Capital works Built-in cupboards, walls, flooring, structural improvements May need to be tracked against Division 43 deductions Plant and equipment Appliances, blinds, carpets, removable assets May need separate depreciation treatment Major renovations Full room upgrades or substantial property changes Helps explain value changes and tax treatment

Keep Loan Cost and Finance Records

Loan documents can help your accountant review borrowing costs linked to your investment property. Keep records for: loan establishment fees mortgage discharge fees refinance costs lender fees loan contracts lender correspondence Not every loan cost will form part of your property’s cost base. Some costs may be deductible over time. Others may have a different tax treatment. Keep the records and let your accountant decide how each cost should be treated. This is especially important if you have also claimed interest, negative gearing deductions or other expenses during the ownership period.

Record Agent Fees, Marketing Costs and Selling Expenses

Selling costs can affect your final CGT calculation, so keep clear records of every cost linked to the sale. These may include: real estate agent commission advertising and marketing fees auctioneer fees property styling or staging costs legal fees conveyancing fees settlement agent fees discharge or release costs Agent invoices and settlement records can help prove the cost of selling the property. This gives your accountant stronger evidence when calculating your capital gain. Keep these records with your sale contract and final settlement statement so your property CGT records stay complete.

Get Valuation Evidence Before Key Dates Become Harder to Prove

Valuation evidence may become more important if you hold an investment property across the proposed CGT reform date. A formal market valuation can help support market value if your accountant needs to review gains across different tax periods. This can matter if the property was once your main residence and later became a rental property for part of the ownership period. It may also help confirm the property’s value for CGT purposes. This is generally more important when there is a change in use during the ownership period. Valuation evidence How it may help with CGT records Independent property valuation report Supports market value at a specific date Retrospective valuation report Helps estimate the value for a past CGT date Comparable sales evidence Shows how similar properties were priced nearby Property appraisal Provides market context, but may carry less weight than a formal valuation Renovation and improvement records Helps explain value changes over time Depreciation schedule Records eligible capital works and depreciable assets Property condition photos Shows the property’s state before or after major work This evidence can make your property CGT records stronger if you bought before the rules change and sell after the change takes effect.

Create a Simple CGT Records Folder Before You Sell

A simple folder system can make your property CGT records easier to manage before sale time. Group your records by purchase documents, loan and finance records, renovation invoices, tax documents, valuation evidence and sale records. This keeps contracts, settlement statements, depreciation schedules, agent fees and valuation reports in one place. A clear system helps your accountant review your investment property cost base records faster. It also lowers the risk of missing key documents when calculating CGT. Folder name Records to include Purchase records Purchase contract, settlement statement, stamp duty receipt, legal fees Loan and finance Loan contracts, refinance documents, lender fees, discharge records Renovations and improvements Builder invoices, trade receipts, material costs, before and after photos Tax and depreciation Depreciation schedule, annual tax returns, accountant letters Valuation evidence Market valuation, retrospective valuation, comparable sales evidence Sale records Sale contract, agent invoice, advertising costs, final settlement statement

How a Tax Depreciation Schedule Can Support Better Property Records

A tax depreciation schedule does not replace your property CGT records, but it can support better record keeping. A depreciation schedule records eligible capital works and depreciable assets in your investment property. This may include structural improvements, fixed items, plant and equipment and renovation details. For property investors, this can help create a clearer record of: construction costs capital works deductions Division 43 capital works Division 40 plant and equipment renovation details asset values depreciation claims made during ownership This matters because depreciation can affect your tax position while you own the property. It may also be relevant when reviewing records at sale time. Keep your depreciation schedule with your renovation invoices, settlement statements, accountant letters and annual tax records.

Final Checklist: Investment Property Cost Base Records to Prepare

Before the CGT rules change, make sure your key property records are complete and easy to access. Focus on five main groups: purchase and sale contracts settlement statements and conveyancing records renovation invoices, trade receipts and improvement records loan, refinance and discharge cost records agent fees, valuation evidence and depreciation schedules These records can help support your cost base, prove eligible expenses and make CGT easier to calculate when you sell. To prepare your investment property records, including tax depreciation and property valuation support, before the CGT rules change, get a free quote from Duo Tax or call 1300 185 498.

How To Prepare Your Investment Property Cost Base Records Before The CGT Rules Change

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Tiếng Việt
- Khấu Hao Thuế
- Định Giá Bất Động Sản
中文
- 房产税务折旧
- 房产估值
한국어
- 세금 감가상각 스케줄
- 부동산 감정
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