Article 12 - FABC Accounting

By FABC Accounting
Published On: December 14th, 2025

Keywords

investment property CGT cost base Australia reduce capital gains tax property tax planning hidden property costs

Why Do I Need to Pay So Much Tax When Selling My Investment Property?

Many property investors believe the cost of an investment property is limited to the purchase price. In reality, numerous hidden expenses throughout the ownership period can significantly impact your future capital gains tax (CGT).

Failing to recognise these costs could result in thousands of dollars in unnecessary tax payments.

Three Major Categories of Hidden Costs

1. Purchase Phase

Stamp duty;
Legal fees;
Loan setup and application fees.

2. Improvement Phase

Extensions and renovations;
Structural upgrades;
Flooring replacement and insulation works.

3. Holding Phase

Long-term structural repairs;
Value-enhancing improvements.

When properly recorded, these expenses can form part of your cost base and reduce CGT legally.

How FABC Accounting Can Support You

FABC Accounting helps property investors:

Identify hidden deductible costs;
Structure compliant record-keeping systems;
Plan CGT strategies well before sale.

Don’t wait until settlement day to discover tax mistakes. Contact FABC Accounting today to ensure your investment property tax planning is optimised and compliant.