Private ruling: Capital gains tax
Date of advice: 6 September 2022
Published: November 2022
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to include car travel in the cost base when calculating capital gains tax? | A1: Yes. Based on the information provided to the Commissioner, the car travel expenses you incurred to maintain your residential property after it had been rented out and prior to it being sold can form part of the third element of the cost base when calculating any capital gains or losses. You are not able to use the cents per kilometre method when calculating your travel expenses. You will need to calculate the actual expense incurred and include this amount in the cost base when calculating the capital gains or loss.

Relevant facts and circumstances: You have a residential property. This property was rented out for several years. After the tenant vacated the property you carried out maintenance work on the property. The maintenance did not require a tradesman and consisted of replacing door handles and locks, silicon sealant and grounds maintenance. You carried tools, ladders and mowers to the property to carry out the maintenance. You made several trips from your home to the property, stopping for relevant supplies. Each round trip was several kilometres. The property was sold in the same year that it ceased to be rented out.

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