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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 108-15  Sets of collectables  

 ITAA 36

108-15(1)  

This section sets out what happens if:


(a) you own *collectables that are a set; and


(b) they would ordinarily be *disposed of as a set; and


(c) you dispose of them in one or more transactions for the purpose of trying to obtain the exemption in section 118-10.

Example:

You buy a set of 3 books for $900. You apportion the $900 among each book: see section 112-30. If the books are of equal value, you have acquired each one for $300.

If you dispose of each book individually, you would ordinarily obtain the exemption in section 118-10, because you acquired each one for less than $500.

108-15(2)  

The set of *collectables is taken to be a single *collectable and each of your *disposals is a disposal of part of that collectable.

Example:

To continue the example, the 3 books are taken to be a single collectable. You will not obtain the exemption in section 118-10, because you acquired the set for more than $500.

You work out if you make a capital gain or loss from a disposal of part of an asset by comparing the capital proceeds from it with the cost base or reduced cost base (as appropriate) of the disposed part.

Note 1:

Section 112-30 tells you how to apportion the cost base and reduced cost base of a CGT asset on a disposal of part of an asset.

Note 2:

This section does not apply to a collectable you last acquired before 16 December 1995: see section 108-15 of the Income Tax (Transitional Provisions) Act 1997.


 



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