I bought an investment property in December 2003 for $480,000. Borrowing costs associated with the purchase (stamp duty, legal fees, loan charges) were $10,000. I have never lived in the house and have rented it out at $400 per week I recently paid $10,000 to repaint and recarpet the house when the last tenant moved out. The house was last recarpeted and repainted 10 years ago,and hopefully the new works should last another 10 years. I also built a pool (2008) for approximately $15,000 and a pool fence to meet council requirements at $1000. A new tenant then moved in (Now $500 per week)After the last tenant moved in, there was significant damage to the house (2010) and I was settled outside of court $320,000 ($300,000 for damage, $20,000 for loss of rent). Market value of house before damage was $700,000. After the damage the house had a market value of $450,000. I spent $280,000 of the settlement repairing the house.I am now going to sell the house for $720,000 (The market value is $750,000), incurring approx $9000 in fees, commisions, adverstising.What are the CGT implications. What is deductible to reduce the cost base? Are there any CGT asset rollovers?(Australian law)
Would like to sort it out without accountant fees etc
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