Income Tax Assessment Act 1997
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Hide history noteSECTION 30-215 How much you can deduct 30-215(1)
This section contains the rules for working out how much you can deduct for a gift of property that you make to a recipient covered by item 4, 5 or 6 of the table in section 30-15 .
30-215(2)
The general rule is that the amount you can deduct for a gift of this kind is the average of the * GST inclusive market values (as reduced under subsection 30-15(3) if that subsection applies) specified in the written valuations you got from the approved valuers.
Note:
In some situations you must reduce the amount you can deduct: see section 30-220 .
30-215(3)
The exceptions to the general rule are set out in this table:
| Amount you can deduct for a gift of property | ||||
| Item | In this case: | The amount you can deduct is: | ||
| 1 | Section 30-205 (which is about the proceeds of the sale being assessable) applies, and you bought the property | the amount you paid for the property, reduced by the amount of any *input tax credit to which you are or were entitled for your *acquisition of the property | ||
| . | ||||
| 2 | Section 30-205 (which is about the proceeds of the sale being assessable) applies, and you created or produced the property | so much of the cost of creation or production as you would have been able to deduct if you had sold the property, reduced by the amount of any *input tax credit to which you are or were entitled for your *acquisitions to the extent that they were made for the purpose of creating or producing the property | ||
| . | ||||
| 3 | Neither of cases 1 and 2 applies, and you acquired the property: | the lesser of the amount you paid for the property and: | ||
| (a) | less than one year before making the gift (otherwise than by inheriting it); or | (a) | if the average of the written valuations you got fairly represents the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift - that average; or | |
| (b) | for the purpose of giving it away; or | (b) | if it does not - the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift | |
| (c) | subject to an *arrangement that the property would be given away | |||
| . | ||||
| 4 | None of cases 1 to 3 applies, and the average of the written valuations you got does not fairly represent the *market value of the property on the day you made the gift | the *GST inclusive market value (as reduced under subsection (4) if that subsection applies) of the property on the day you made the gift |
30-215(4)
For the purposes of items 3 and 4 of the table in subsection (3), the * GST inclusive market values of the property in question are reduced by 1/11 if you would have been entitled to an * input tax credit if:
(a) you had * acquired the property at the time you made the gift; and
(b) your acquisition had been for a * creditable purpose.
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