TaxTank includes dedicated functionality to track capital costs and pre-purchase expenses, ensuring they’re captured correctly for CGT purposes.
However, in many cases these expenses will also appear as bank transactions, which can make it unclear how they should be allocated.
This article explains how to handle those transactions so everything is recorded correctly.
What if these expenses show up in bank transactions?
If you’ve received bank transactions for capital-related items, such as:
Pre-purchase costs
Buyer’s agent fees
Initial repairs (not building)
Other capital costs
You can allocate them to the category "Capital, Buying & Setup Costs (Clearing)"
This category will:
Add the expense to the property records for tracking
Not affect your tax or appear in claimable deductions
Important: Allocating the bank transaction alone is not enough. You also need to add the same amounts into the Capital costs in the 'Edit Property' section. This ensures your CGT is calculated correctly when you decide to sell.
👉 For detailed steps, see: How to Record Capital Costs (including stamp duty and buyer’s agent fees)
👉 Got borrowing expenses to allocate? Check out: How to add borrowing expenses for your investment property.
