A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-1 - CAPITAL GAINS AND LOSSES: GENERAL TOPICS  

Division 108 - CGT assets  

Subdivision 108-B - Collectables  

SECTION 108-10  Losses from collectables to be offset only against gains from collectables  

 ITAA 36

108-10(1)  

In working out your *net capital gain or *net capital loss for the income year, *capital losses from *collectables can be used only to reduce *capital gains from collectables.

Note:

You choose the order in which you reduce your capital gains from collectables by your capital losses from collectables.

Example:

Your capital gains from collectables total $200 and your capital losses from collectables total $400. You have other capital gains of $500. You have a net capital gain of $500 and a net capital loss from collectables of $200.

The losses from collectables cannot be used to reduce the $500 capital gain.

108-10(2)  

A collectable is:


(a) *artwork, jewellery, an antique, or a coin or medallion; or


(b) a rare folio, manuscript or book; or


(c) a postage stamp or first day cover;

that is used or kept mainly for your (or your *associate's) personal use or enjoyment.

108-10(3)  

These are also collectables :


(a) an interest in any of the things covered by subsection (2); or


(b) a debt that arises from any of those things; or


(c) an option or right to *acquire any of those things.

Note:

Collectables acquired for $500 or less are exempt. However, you get an exemption for an interest in one only if the market value of all the interests combined is $500 or less: see Subdivision 118-A .

108-10(4)  

If some or all of a *capital loss from a *collectable cannot be applied in an income year, the unapplied amount can be applied in the next income year for which your *capital gains from *collectables exceed your *capital losses (if any) from collectables.

Example:

You have a capital gain from a collectable for the income year of $200 and a capital loss from another collectable of $600.

Your capital loss from one collectable reduces your capital gain from the other to zero. You cannot apply the remaining $400 of the capital loss in this income year, but you can apply it in a later income year.

108-10(5)  

If you have 2 or more unapplied *net capital losses from *collectables, you must apply them in the order you made them.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page