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INCOME TAX ASSESSMENT ACT 1997 - SECT 30.215

How much you can deduct

  (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.

  (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.

  (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:

(a) less than one year before making the gift (otherwise than by inheriting it); or

(b) for the purpose of giving it away; or

(c) subject to an * arrangement that the property would be given away

the lesser of the amount you paid for the property and:

(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) 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

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

  (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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