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  

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.