Can someone confirm that i'm thinking this through correctly... My parents transferred a property to me (under mutual love and affection) and I didn't have to pay anything besides the stamp duty. Let's say the stamp duty was based off a value of $500k. It's deemed as an investment property and i have let it out since. When I sell the house, how do i work out the capital gain? I would assume that it's the gain between the selling price (once i sell) and the price that the State Revenue Office derives the stamp duty. Is this right? At the time of transfer, i had several real estate agents value the property, ranging from say $500k to $600k (i of course took the lowest one for stamp duty purposes). When i sell the house, do i have to use the $500k valuation or can i choose the $600k as the cost base...etc. Hope that makes sense?