Private ruling: Cost base - cost of owning an asset
Date of advice: 8 January 2026
Published: 2 March 2026
Ruling period: 1 July YYYY to 30 June YYYY
Date scheme commenced: DD MM YYYY

Ruling: Q1: Under section 110-25 of the Income Tax Assessment Act 1997 , will the costs of owning a CGT asset such as land tax, home loan interest, water and council rates from MM YYYY to MM YYYY be included in the cost base of the asset? | A1: Yes. The cost base of the Property, on the day your parent passed away, includes the cost of owning the Property such as home loan interests, land tax, water and council rates from MM YYYY until DD MM YYYY.

Relevant facts and circumstances: 1. You are an individual. 2. Your parent purchased a property in MM YYYY (the Property). 3. Your parent rented the Property out to you and your spouse for free from MM YYYY until DD MM YYYY. 4. During the period from MM YYYY to DD MM YYYY, your parent did not claim land tax, home loan interest, water and council rates as rental deductions in their income tax returns. 5. Your parent passed away on DD MM YYYY, which resulted in the transfer of ownership of the Property from your parent to you. 6. The Property was not used as the main residence of your parent. 7. You applied for a private ruling (previous ruling) on DD MM YYYY to determine whether the costs of owning a CGT asset subject to this ruling from MM YYYY to DD MM YYYY be included in the cost base of the asset. The ruling was issued on DD MM YYYY and applied to the YYYY income year. 8. The purpose of this ruling is to extend the time frame of the previous ruling to cover the YYYY financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 110-25 | Income Tax Assessment Act 1997 section 128-15