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INCOME TAX ASSESSMENT ACT 1997 - SECT 108.10 Losses from collectables to be offset only against gains from collectables

INCOME TAX ASSESSMENT ACT 1997 - SECT 108.10

Losses from collectables to be offset only against gains from collectables

  (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.

  (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.

  (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.

  (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.

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

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