Worthic’s Real Estate Cost base register records the capital amounts invested in acquiring and improving a property. It provides a structured history that can support capital-gains calculations when the property is sold and supplies the invested-cost denominator used for Portfolio ROI.
Cost base is different from current property value. Property value reflects what the asset is estimated to be worth now, while cost base represents qualifying historical expenditure incurred to acquire, establish and improve it.
What belongs in the cost base?
Depending on the applicable tax rules, cost-base records may include:
- The property purchase price
- Transfer, conveyancing and registration costs
- Legal and professional fees directly related to acquisition
- Transfer duties or similar acquisition taxes
- Capital improvements, renovations and extensions
- Certain costs directly associated with disposal
Each entry can record a description, category, date, amount, payee and supporting notes or documents. Add costs individually so the register retains a clear audit trail rather than recording only one unsupported total.
Routine operating expenses—such as rates, insurance, utilities, cleaning, ordinary repairs and property-management fees—generally do not form part of cost base. Financing interest and loan principal are also tracked separately. Tax treatment differs by jurisdiction, and an expense should not be included merely because it relates to the property; confirm eligibility with a tax adviser.
Why maintain a cost base?
On disposal, capital gain or loss is generally determined by comparing the disposal proceeds with the property’s allowable cost base, subject to local tax rules and adjustments. A complete register makes it easier to substantiate the calculation and provide supporting records to an accountant or tax authority.
Worthic also uses recorded cost base when calculating Portfolio ROI:
(Last-12-month operating profit + recorded capital growth) ÷ recorded cost base × 100
If a property has no positive cost base recorded, its ROI is shown as Unavailable rather than using current property value as a substitute.
Cost base, cashflow and depreciation
These records answer different questions:
- Cost base tracks qualifying capital expenditure for investment-performance and capital-gains purposes.
- Monthly cashflow shows when money was actually paid or received, including capital purchases and loan repayments.
- Annual profit and loss reports recognised income and expenses, not the full cost of acquiring or improving the property.
- Assets and depreciation allocate the cost of depreciating assets over their useful lives.
An item may therefore appear in cashflow when paid, in the asset register for depreciation, and in the cost-base register where permitted, without being treated as an immediate operating expense.
Accessing the register and report
Open the relevant workspace, select Real Estate, choose the property, and open Cost base. Add or update entries and attach supporting information where available.
To generate the report, open the property’s Report Centre, choose Cost base, and select Generate report. The report summarises the current recorded base cost and provides the supporting entry-level breakdown. Previously generated versions can be reopened through View previous.